18 Search Results
How To Calculate Cost of Goods Sold (COGS)
https://www.sofi.com/learn/content/cost-of-goods-sold/
“Cost of goods sold” (COGS) refers to the cost of producing the goods sold by a company. Calculating COGS involves knowing the amounts you spend to create your products, which helps in determining whether your business is making a profit. Cost of goods sold is sometimes referred to as “cost of sales.” Key Points • Cost […]
What Is NOPAT? How Does It Differ from EBITDA?
https://www.sofi.com/learn/content/nopat-vs-ebitda/
The acronyms NOPAT vs EBITDA are important business valuation methods, and the debate about them can lead you into the finer details of a company’s financials. NOPAT (net operating profit after tax) is the amount of money a business makes from its day-to-day operations after taxes. Because analysts start with a company’s operating income, both […]
Understanding Budgeted Income Statements
https://www.sofi.com/learn/content/budgeted-income-statement/
A budgeted income statement is a tool that allows businesses to estimate how well they will perform financially in the coming months and year. It looks like a regular income statement except that it estimates the expected revenue, net income, and expenses for an upcoming period instead of analyzing past performance. A budgeted income statement […]
What Is Net Income (NI)? Definition, Calculation, and Example
https://www.sofi.com/learn/content/what-is-net-income/
Net income is the total profit a business makes in a given reporting period after all of its expenses are paid. It’s often referred to as a company’s “bottom line” because it appears at the bottom line of the income statement. Read on for a closer look at what net income is, how to calculate […]
EBITDA vs Net Income: Differences and Relationship
https://www.sofi.com/learn/content/ebitda-vs-net-income/
Net income and EBITDA (earnings before interest, taxes, depreciation, and amortization) are both measures of business earnings. But they are not the same thing. Net income refers to earnings of a business during a certain period after subtracting all expenses incurred by the company. EBITDA is similar, but doesn’t subtract certain expenses (such as interest […]