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Let's see this example, Navya has been running 3 pizza outlets, named “Roma”, in different parts of the city since the last 3 months. Her outlets are lo...

Revenue is the income that a business earns by selling merchandise or offering specific services. It is also referred to as sales or turnover. Revenue is ca...

Interest expense refers to the amount of interest paid by the business on borrowed funds. Suppose Navya had borrowed Rs.12,00,000 from a bank at an interest...

This is the tax on profit earned that a company owes the Government. This tax is very similar to income tax an individual pays on his income. In India, a fl...

Payout refers to the amount of profits of the company that has been paid out as dividends and has not been utilised in the business. Payout ratio is calcu...

Net income is the profit earned by the company from its business operations after accounting for all operational & non operational expenses, interest co...

PBIT stands for profit before interest and taxes and is calculated as the difference between EBITDA and depreciation & amortization. Navya’s PBIT is R...

Calculating earnings per share (EPS) involves 2 different items, net income and total common shares outstanding. EPS is calculated as net income divided by ...

Depreciation is the planned and gradual reduction in the value of a fixed asset over its useful life. Depreciation is applied to fixed assets like car, comp...

When a company earns profits, it can either decide to retain the same and invest it in the business or distribute the profits to the shareholders of the com...