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Income Statement Glossary
| Income |
Income generated by the business |
| Cost of goods |
What it costs the business to sell its inventory or service |
| Gross profit margin |
Revenue minus cost of goods |
| Operating expenses |
Overhead and labor expenses necessary to run the business |
| Total expenses |
Sum of overhead and labor expenses |
| Net profit |
Gross profit minus total expenses |
| Depreciation |
The amount by which the value of a company asset has fallen in a given time period |
| Net profit before interest |
Net profit minus depreciation |
| Interest |
All interest on debts |
| Net profit before taxes |
Net profit minus interest |
| Profit after taxes |
Profit minus interest. This is also referred to as the bottom line. |
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To Financials Toolbox |
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