FINTREE BOOTCAMP PRESENTS

Finance Jargon!
[ It's a long road, but totally worth it. ]

SALES

Generally a synonym for revenue; ‘sales’

is used for goods, whereas ‘revenue’ is

used for goods and services.

COST OF GOODS SOLD

(COGS)

For a given period, equal to beginning

inventory minus the ending inventory plus

the cost of goods acquired/produced

during the period.

EARNINGS BEFORE INTEREST,

TAXES, DEPRECIATION AND
AMORTIZATION (EBITDA)

A measure of company’s operating

performance, i.e., before factoring

financing/accounting/tax implications.

EARNINGS BEFORE
INTEREST AND TAXES
(EBIT)

Measure of firm’s profit that includes

all expenses except interest and tax

expenses.

EARNINGS AFTER TAX /

PROFIT AFTER TAX / NET
PROFIT / NET INCOME

Calculated as Revenue minus all

expenses.

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