An Equation For Net Income
- Net sales (revenue)
- – Cost of goods sold
- = Gross profit
- – SG&A expenses (combined costs of operating the company)
- = EBITDA
- – Depreciation & amortization
- = EBIT
- – Interest expense (cost of borrowing money)
- = EBT
- – Tax expense
- = Net income (EAT)
Read more about this topic: Net Income
Famous quotes containing the words equation, net and/or income:
“A nation fights well in proportion to the amount of men and materials it has. And the other equation is that the individual soldier in that army is a more effective soldier the poorer his standard of living has been in the past.”
—Norman Mailer (b. 1923)
“Hard times accounted in large part for the fact that the exposition was a financial disappointment in its first year, but Sally Rand and her fan dancers accomplished what applied science had failed to do, and the exposition closed in 1934 with a net profit, which was donated to participating cultural institutions, excluding Sally Rand.”
—For the State of Illinois, U.S. public relief program (1935-1943)
“The question for the country now is how to secure a more equal distribution of property among the people. There can be no republican institutions with vast masses of property permanently in a few hands, and large masses of voters without property.... Let no man get by inheritance, or by will, more than will produce at four per cent interest an income ... of fifteen thousand dollars] per year, or an estate of five hundred thousand dollars.”
—Rutherford Birchard Hayes (1822–1893)