Profit (calculation)Profit is revenue minus expenses. For gross profit, you subtract some expenses. For net profit, you subtract all expenses.Gross profits and operating profits are steps on the road to net profits. Net profits are what you truly get to keep....
Operating profit is also referred to colloquially asearnings before interest and tax (EBIT). However, EBIT can include non-operating revenue, which is not included in operating profit. If a company doesn't have non-operating revenue, EBIT and operating profit will be the same figure. Understandi...
and which one they focus on depends on what insights the business is hoping to glean. Operating profit margin is a crucial profitability measure because it gives a good idea of the sustainability and scalability of a company’s core business model, potentially guiding...
We will also provide real-life examples to illustrate how businesses have successfully improved their operating cash flow. So buckle up and get ready to take control of your financial future! What is Operating Cash Flow? Operating cash flow (OCF) is a financial metric that measures the cash ...
One more point to mention isoperating profit. It is often confused with gross income, but it’s important to avoid this common mistake. Operating earnings are a lower value since they are formed on the basis of sales profit by deducting operating expenses such as utility costs, property taxes...
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No matter how eager you are to get a product into market, taking the time to create a solid foundation now will help increase the chances of your business surviving long-term. Some of the basic things you may need to start a small business include: Idea backed by market res...
A good customer retention rate means your customers are coming back again and again. Here’s our guide to improving your customer retention rate.
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The Not-for-Profit Organisations (NPO) sector in Kenya cannot be underestimated. Its contributions to the economy, job market, and the welfare of the underprivileged are undeniable. To harness this vast resource, the government must create a more conducive legal and reg...