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)
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—Norman Mailer (b. 1923)
“it was you untying the snarls and knots,
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—Anne Sexton (1928–1974)
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—Bible: Hebrew, Proverbs 3:13-18.