Glossary
Terms, defined plainly
- Gross marginFundamentals
- Gross profit as a percentage of revenue; how much of each sale survives direct costs.
- Lesson: Margins: gross, operating, net
- Income statementFundamentals
- Reports revenue, costs and profit over a period such as a quarter or year.
- Lesson: The three financial statements
- Operating marginFundamentals
- Operating income as a percentage of revenue; profitability of the core business after running costs.
- Lesson: Margins: gross, operating, net
- RevenueFundamentals
- Total value of sales in a period, before any costs. Also called the top line.
- Lesson: Revenue, earnings, and what sits between