Net Income is a key line item, not only in the income statement, but in all three core financial statements. While it is arrived at through| Corporate Finance Institute
Debt capacity refers to the total amount of debt a business can incur and repay according to the terms of the debt agreement.| Corporate Finance Institute
Return on Equity (ROE) is a measure of a company’s profitability that takes a company’s annual return (net income) divided by the value of its total shareholders' equity.| Corporate Finance Institute
We discuss the different methods of projecting income statement line items. Projecting income statement line items begins with sales revenue, then cost| Corporate Finance Institute
Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin.| Corporate Finance Institute
Earnings before tax, or pre-tax income, is the last subtotal found in the income statement before the net income line item. EBT is found| Corporate Finance Institute
Accounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers. Companies allow| Corporate Finance Institute
Enterprise Value, or Firm Value, is the entire value of a firm equal to its equity value, plus net debt, plus any minority interest| Corporate Finance Institute
Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.| Corporate Finance Institute
The XNPV function in Excel should be used over the regular NPV function in financial modeling and valuation analysis to ensure precision and accuracy.| Corporate Finance Institute
Explore cash equivalents, their examples, role in working capital and importance in financial modeling for accurate liquidity analysis and valuation.| Corporate Finance Institute
EV/EBITDA is used in valuation to compare the value of similar businesses by evaluating their Enterprise Value (EV) to EBITDA multiple relative to an average.| Corporate Finance Institute
Revenue Streams are the various sources from which a business earns money from the sale of goods or provision of services. The types of| Corporate Finance Institute