curitibocas.com

1. Gross profit (margin): revenue, direct operating expenses.

This type of profit is a measure of how efficiently a company is on the control of direct costs (costs associated with the site). Normally, the direct costs are more variable and difficult to control. In fact, all the intense and purposes, the G & can be considered more or less fixed costs with little variation.

2. Net income before taxes: Gross Profit-(+ Sale of G & A)

This type of profit is the most commonly used definition of profit used to determine the profitability of a company. Includes all current expenditure involved in the operation and is subtracted from income. Excludes certain costs such as interest, taxes, depreciation and amortization, as these vary from one company to another. For the reasons stated in the previous section, see many financial reports for the year as “EBITA” means “earnings before interest, taxes, depreciation and amortization.”

3. Total Returns to the owner: Profit + (salary and benefits of the owner).

Wages, insurance, automotive and travel and other expenditure categories are eccentric part of the compensation less obvious to the ownership or management. These business expenses can easily be considered a distinct advantage that could be considered surplus. Pay income taxes does not mean that it is not good business to legally minimize taxable income. Often a company gains is below the industry average only because the owner’s salary and benefits distorts the bottom line. Be able to follow a realistic assessment of business performance is very important and monitoring internal revenue, costs and benefits should be kept as “virgin” as possible, at least for management.