5_Reading income statements Flashcards
1
Q
What is the Gross Margin ?
A
Revenue - Cost of Revenue = Gross Margin It is the first measure for efficiency
2
Q
What is the operating expenses ?
A
All the secondary expenses added together
3
Q
What is the operating Profit/Loss ?
A
Gross Margin - Operating expenses = operating Profit/Loss or also called operating income It is the second measure for efficiency
4
Q
What is the Operating Margin ?
A
Operating Profit/Loss / Revenue It is the third measure for efficiency
