Page tree

Versions Compared

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

...

The ultimate measure of the Business profitability as per the following formula:

Net Income = Revenue -  Cost of products sold -  Expenses - Depreciation OPEX  - Interest - Income Taxes


The terms above are calculated to for the same accounting period (usually 12 months).

...

Only positive Net Income adds value to the Business.


See also

...

Business / Business Administration / Financial Management / Financial Accounting 

Profit and Loss (P&L) ]