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Building world-class forecasts + dashboards with Model Wiz | Strategic Finance Thought Leader (450k+ Followers) | Founder @ Mighty Digits

Aug 27, 2023, 6 tweets

Do you know the difference between Gross Profit, Net Income, EBITDA, and Cash Flows?

Learn all about it over here ...

๐—š๐—ฟ๐—ผ๐˜€๐˜€ ๐—ฝ๐—ฟ๐—ผ๐—ณ๐—ถ๐˜

This is the amount thatโ€™s left over from your revenue after you subtract the cost to deliver your product or service

๐—ก๐—ฒ๐˜ ๐—ถ๐—ป๐—ฐ๐—ผ๐—บ๐—ฒ ๐Ÿ’ฐ

This is the net profitability of your business for a specific period of time - IE all income less all expenses

๐—˜๐—•๐—œ๐—ง๐——๐—”

Earnings Before Interest Tax Depreciation Amortization

Commonly used for valuations, and approximating free cash flows

๐—–๐—ฎ๐˜€๐—ต ๐—™๐—น๐—ผ๐˜„๐˜€ ๐Ÿ’ธ๐Ÿ’ธ

This is the net cash balance change from one period to the next

It's shown on the Statement of Cash Flows

๐—”๐—ป๐—ฑ ๐˜๐—ต๐—ฎ๐˜'๐˜€ ๐—ฎ ๐˜„๐—ฟ๐—ฎ๐—ฝ!

๐—œ๐—ณ ๐˜†๐—ผ๐˜‚ ๐—ฒ๐—ป๐—ท๐—ผ๐˜†๐—ฒ๐—ฑ ๐˜๐—ต๐—ถ๐˜€, ๐—ฐ๐—ผ๐—ป๐˜€๐—ถ๐—ฑ๐—ฒ๐—ฟ:

๐Ÿญ. ๐—™๐—ผ๐—น๐—น๐—ผ๐˜„๐—ถ๐—ป๐—ด ๐—บ๐—ฒ @๐—ฌ๐—ผ๐˜‚๐—ฟ๐—–๐—™๐—ข๐—š๐˜‚๐˜†

๐Ÿฎ. ๐—๐—ผ๐—ถ๐—ป๐—ถ๐—ป๐—ด ๐—บ๐˜† ๐—ป๐—ฒ๐˜„๐˜€๐—น๐—ฒ๐˜๐˜๐—ฒ๐—ฟ yourcfoguy.com/newsletter

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