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Formula
Net Profit / Revenue

What’s it mean?
To gauge the degree to which a company or a business activity makes money. It represents what percentage of sales has turned into profits. How many cents of profit has been generated for each dollar of sale.

DBA Examples
14%

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Synonyms
None

What’s it mean?
How much you pay to Uncle Sam (govt).

DBA Examples
We pay 7.5% of the revenue for taxable sales.

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Synonyms
- Addition
- Profit

What’s it mean? the total income after subtracting the costs of the items sold

DBA Examples
- The money we gain through selling shirts after subtracting the cost of using our machinery and inks
- Or even any other merchandise.

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Synonyms:

net earnings

net pay

net wages

real wages

take-home

take-home income

taxable income

wages after taxes

What’s it mean?
noun

1. the actual profit after working expenses not included in the calculation of gross profit have been paid.

DBA Examples:

The Shirts we sell

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Synonyms
operating budget/expense,

What’s it mean? -The cost required for something; the money spent on something.

DBA Examples
Payroll, utilities, equipment, stock (T-Shirts), quickbooks membership

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Synonyms
- cost of sales
- cost of merchandise sold
- carrying value
- production cost
- book value
What’s it mean?
The total amount your business paid as a cost directly related to the sale of products.

DBA Examples
How much the shirts cost, and how much it cost to put the design on the shirt

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Synonyms
Income, Takings, receipts, Proceeds, earnings, profit, cash, sales, and returns.
What’s it mean?
The total earnings a company generates through its core operations.
DBA Example
The money we make from sales.

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INCOME STATEMENT
Definition: a financial statement that shows the company's revenue and expenses during a particular period

What does it tell us?

The companies income and expenditures

Time period(s)?

The amount of time the statement covers can be months or a year.

How is it used?