Profitability key words Flashcards
(10 cards)
Amortisation
The writing off of an i tangible asset
Cost of sales
The direct costs of a business
Exceptional costs
A one off cost, such as large bad debt
Gross profit
The difference between revenue and cost of sales
Operating profit
The difference between gross profit and business overheads, such as selling and administrative expenses
Operating profit margin
Operating profit expressed as a percentage of revenue
Net profit (profit for the year)
The difference between operating profit and interest and exceptional items
Net profit margin
Net profit after tax, expressed as a percentage of revenue
Statement of comprehensive income
A financial document showing a company’s income and expenditure over a particular time period, usually one year
Revenue/ turnover
The total income of a business resulting from sales of goods or services
