Glossary
| Term | Definition |
|---|---|
| Revenue | Total value of sales during a period, before any costs are deducted. |
| COGS (Cost of Goods Sold) | The direct cost tied to producing or purchasing whatever was sold. |
| Gross Profit | Revenue minus COGS — measures profitability before operating expenses. |
| Opex (Operating Expenses) | The costs of running the business day to day (salaries, rent, marketing…), excluding COGS. |
| EBIT | Earnings before interest and taxes — measures core operating profitability regardless of financing. |
| EBT | Earnings before tax, after deducting interest expense. |
| Net Income | The final bottom-line profit after all expenses and taxes — the starting point of the cash flow statement. |
| Depreciation | The allocation of a fixed asset’s cost over its useful life; a non-cash accounting expense. |
| Capex (Capital Expenditures) | Spending on acquiring or upgrading fixed assets (equipment, buildings…). |
| Working Capital | The difference between current assets and current liabilities; reflects day-to-day operating liquidity needs. |
| Retained Earnings | The accumulation of undistributed profits over time; part of shareholders’ equity. |
| Balance Sheet | A snapshot of assets, liabilities, and equity at a specific point in time. |
| Cash Flow Statement | Tracks actual cash moving in and out, split into operating, investing, and financing activities. |
| Dividends | A portion of net income distributed to shareholders in cash. |