Knowledge base · 8 free · 9 categories
Speak fluent finance.
Short reads on the numbers that run every earnings report, pitch deck, and broker app — revenue, EBITDA, P/E, free cash flow, and more. Each entry: a one-line definition, the formula, and a worked example. Explanation, never advice.
Where did the money come from and where did it go?
- Income Statement
Revenue (Top Line)
Total money a company collected from selling its product or service — before any costs are taken out.
- Income Statement
Cost of Goods Sold (COGS)
What it cost the company to make or buy the products it sold during the period — raw materials, factory labour, packaging.
- Income Statement
Gross Profit
Revenue minus the direct cost of making the product. The first profit number on the income statement.
- Income Statement
Operating Expenses (OpEx)
Day-to-day costs of running the business that aren't directly tied to making the product — rent, marketing, salaries, R&D.
- Income Statement
Operating Income (EBIT)
Profit from the core business — gross profit minus operating expenses. Also called EBIT.
- Income Statement
EBITDA
Operating income before non-cash charges are taken out — a rough proxy for cash-generating power.
- Income Statement
Net Income (Bottom Line)
What's left after every cost — operating, interest, taxes, everything. The 'profit' headline.
- Income Statement
Earnings Per Share (EPS)
Net income divided by shares outstanding — the slice of profit attributable to each share.