Finances Glossary

Decode the buzzwords of the finances space
THE LANGUAGE OF FINANCES
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Startup Glossary  | Finanshels

Glossary

A comprehensive guide to understanding and communicating key startup concepts. Your Go-To Resource for Startup Terminology: A Glossary of Key Metrics, Definitions, and Formulas

Net profit calculation

To calculate the net profit, you need to subtract the total expenses from the revenue.

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Net profit margin

The net profit margin is a financial ratio that measures the profitability of a company.

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Net profit margin

The net profit margin is a financial ratio that shows the percentage of revenue that is left over after all expenses have been accounted for.

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Net profit margin calculation

To calculate the net profit margin, you need to divide the net profit by the revenue and multiply the result by 100 to express it as a percentage.

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Non-current assets

Non-current assets, also known as long-term assets, are assets that are expected to provide economic benefits to a company for a period of more than one year.

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Non-current liabilities

Non-current liabilities, also known as long-term liabilities, are liabilities that are not due for payment within the current accounting period.

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Officers

Officers are individuals who are appointed by a company's board of directors to manage the company's day-to-day operations.

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Operating expense

An operating expense, also known as an operating cost, is an expense that a company incurs in the course of its normal business operations.

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Operating profit

Operating profit, also known as operating income or earnings before interest and taxes (EBIT), is the profit earned by a company from its core business operations.

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Operating profit calculation

To calculate operating profit, you need to subtract the company's operating expenses from its revenue.

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Option Pool

An option pool is a portion of a company's equity that is set aside for future employees or other potential equity recipients.

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Outsourced CFO

An outsourced CFO is a professional who provides financial management and strategic planning services to a business on a contract basis.

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