Two measures used for understanding a company's financial health are EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income. While both help gauge how well a ...

Operating income margin is a critical financial metric that measures the proportion of a company’s revenue that remains after paying for variable costs of production, such as wages and raw materials.

Interested in the working principle of operating profit and how the calculation is made? Operating profit is the resulting profit made by a company after deducting cost of goods sold and operating ...

Learn what Cash Flow After Taxes (CFAT) is, how to calculate it, and why it's crucial for assessing a company's financial ...

Net Operating Profit After Tax (NOPAT) is a financial metric that represents a company’s potential profitability if it had no debt. It is crucial for evaluating business performance as it offers a ...

Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

Operating income and revenue both show the money a company makes. However, they have different ways of expressing a company’s earnings. Revenue is a company’s income from its regular business ...