Definition
Revenue minus cost of goods sold, expressed as a percentage of revenue. Measures direct profitability before operating expenses.
Related Business Finance terms
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization. A proxy for a c…
Net Margin
Net income as a percentage of revenue. The most comprehensive profitability metr…
Working Capital
Current assets minus current liabilities. Measures a company's short-term financ…
Cash Flow Statement
A financial statement showing how cash moves through a business across operating…
Income Statement
A financial statement summarising revenue, expenses, and net profit over a speci…
Balance Sheet
A snapshot of a company's assets, liabilities, and equity at a single point in t…
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Browse 350+ finance, crypto, and fintech terms across 12 categories in the Digital.Finance glossary.