Story of Akbar and Birbal

Revenue The amount of money that a keep company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the top line or glaring income figure from which costs atomic number 18 subtracted to determine net income. Revenue is calculated by multiplying the price at which goods or services are interchange by the number of units or amount sold.EBITDA is essentially net income with interest, taxes, depreciation, and amortisation provideed back to it, and can be used to analyze and compare favourableness between companies and industries because it eliminates the effects of financing and accounting decisions. *amortization basically way reducing the value of something to zero Debt equity ratio A neb of a companys financial leverage. Debt/equity ratio is equal to long-term debt dual-lane by common shareholders equity. Typically the data from the prior fiscal grade is used in the calculation.Investing in a company with a higher de bt/equity ratio may be riskier, especially in times of rising interest rates, due to the additional interest that has to be paid out for the debt. For example, if a company has long-term debt of $3,000 and shareholders equity of $12,000, whence the debt/equity ratio would be 3000 divided by 12000 = 0. 25. It is important to fool that if the ratio is greater than 1, the majority of assets are financed through debt. If it is smaller than 1, assets are primarily financed through equity.Return-on-assets An indicator of how profitable a company is telling to its total assets. ROA gives an idea as to how efficient management is at victimisation its assets to generate earnings. Calculated by dividing a companys annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as return on investment. The formula for return on assets is Note Some investors add interest expense back into net income when performing this calculation because theyd identic al to use operating returns before cost of borrowing.