Finance Question

[d4mo]

I can't think of it, and it's really bothering me. What is the name for the amount of money a company spends compared to the amount of money it makes. Some sort of ratio.

 

[Zeze]

Money makes = revenue
Money spends = cost

revenue - cost = profit

 

[makaze]

P&L ?

http://en.wikipedia.org/wiki/Income_statement

 

[vshah]

"profit margin" ??

 

[KMc]

Well there's the Efficiency Ratio, which is Non-Interest Expenses divided by Revenues. Is that it?

 

[Schfifty Five]

Return on investment?

 

[d4mo]

I think it was Profit Margin although Efficiency Ratio is good too. I don't know why I couldn't think of that, I was thinking is was a Return on ...... term.

 

[thebomb]

Return on investment (ROI)?

 

[Fern]

I can't think of it, and it's really bothering me. What is the name for the amount of money a company spends compared to the amount of money it makes. Some sort of ratio.

You'll need to define this better.

E.g., the amount of money a company sells it's product for versus the amount it spends to create said product is the 'Gross margin'. (Profit from Product/Product Costs) (Product costs is generally referred to as Costs of Goods Sold)

If it's total revenue versus total expenditures it's 'Profit Margin'. (Net Profit/Total Revenue)

I'm sure there's a name for 'Total Expenditures/Total revenues', but I can't think of it. In any case it's the inverse of the 'Profit Margin'.

Fern

 

[alien42]

EBITA?

wtf, if i just type EBITA it isn't capitalized but if i type something else it is capitalized?

screwy forum software

 

[SkullWalker]

How about ROR?

 

[BrokenVisage]

EBITA?

wtf, if i just type EBITA it isn't capitalized but if i type something else it is capitalized?

screwy forum software

It's the stupid caps lock filter ATOT decides to annoy us with, if you post a reply with something in all capital letters they will be switched to lowercase.

 

[Schfifty Five]

It's the stupid caps lock filter ATOT decides to annoy us with, if you post a reply with something in all capital letters they will be switched to lowercase.

How does one post in all caps?

 

[BrokenVisage]

How does one post in all caps?

One doesn't. You can either make one of the letters lowercase or do what me and other members end up doing and put a /caps at the bottom of the post. Or be creative.

 

[vshah]

ONE MUST BE CRAFTY

trololo