Profitabilty Key Words Flashcards
Amortisation
The writing off of and intangible asset.
Statement of comprehensive income
A financial document showing a company’s income and expenditure over a particular time period, usually a year.
Net profit margin
Net profit after tax. This is expressed as a percentage.
Net profit
The difference between operating profit and interest and exceptional items
Operating profit margin
Operating profit expressed as a percentage.
Operating profit
The difference between gross profit and overheads.
Gross profit margin
Gross profit expressed as a percentage
Gross profit
Difference between revenue/turnover and cost of sales
Exceptional costs
A one off cost such as large debt.
Cost of sales
The direct cost of a business
Revenue / turnover
The total income of a business from sales of goods and services.
