Adlega Blog:
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EBITDA: Formula, Meaning & How to Calculate
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures profit from core operations before financing, tax, and non-cash charges. Formula: Net Income + Interest + Taxes + Depreciation + Amortization.…
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EBIT (Earnings Before Interest and Taxes): Formula & Meaning
EBIT (earnings before interest and taxes) measures profit from a company's core operations, before financing and tax costs. The formula is Revenue − COGS − Operating Expenses. It's also called operating income.…
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Total Profit (Net Income): Formula & How to Calculate
Total profit — also called net profit or net income — is what a company keeps after subtracting all expenses (COGS, operating costs, interest, and taxes) from revenue. It's the true bottom line of profitability.…
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Cash Flow
What is Cash Flow? Cash Flow is about tracking the money that comes into and goes out of a business. It shows how much cash a company has and helps ensure there’s enough to pay bills and invest in growth. Types of Cash Flow Operating Cash Flow : This is the cash a company earns…
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Expansion Revenue
What is Expansion Revenue? Expansion Revenue is the extra money a company makes from its existing customers as they spend more on its products or services. Unlike new revenue from new customers, expansion revenue comes from getting current customers to buy more or upgrade . What Expansion Revenue Includes Upselling : When current customers buy…
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Gross Revenue: Definition, Formula & vs Net Revenue
Gross revenue is the total money a company earns from all sources before subtracting any expenses, returns, or discounts. It's the top line of the income statement — distinct from net revenue, which is after deductions.…
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Margin: Types, Formulas & How to Calculate
In business, margin measures how much profit you keep as a percentage of revenue. The four main types are gross margin, operating margin, net margin, and contribution margin — each subtracting more costs from revenue.…
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Gross Profit: Formula, How to Calculate & Examples
Gross profit is what's left from revenue after subtracting the cost of goods sold (COGS). The formula is Gross Profit = Revenue − COGS. It shows how efficiently a company produces and sells its products before operating expenses.…
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Cost of Goods Sold (COGS): Formula & How to Calculate
Cost of Goods Sold (COGS) is the direct cost of producing the goods a company sells in a period. The formula is COGS = Beginning Inventory + Purchases − Ending Inventory. It's subtracted from revenue to get gross profit.…
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Net Income: Formula & How to Calculate
Net income is a company's profit after all expenses, taxes, and interest are subtracted from total revenue. The formula is Net Income = Total Revenue − Total Expenses. It's the 'bottom line' of the income statement.…
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SaaS Business Model
SaaS Business Model The SaaS (Software as a Service) business model is about providing software over the internet instead of through physical copies or local installs. Customers subscribe to the software, usually paying monthly or yearly, instead of buying it outright. SaaS Company A SaaS company makes and offers software applications online using cloud technology.…
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Revenue
What is Revenue? Simple Definition: Revenue is the total amount of money a business earns from selling its main products or services before any expenses are subtracted. Also Known As: Top line Gross income Sales Turnover (in some countries) Types of Revenue 1. Operating Revenue Money earned from main business activities. Examples: Product sales for…