Term
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Definition
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Term
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Definition
| quantity * variable costs |
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Term
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Definition
| total variable costs + fixed costs |
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Term
| profit (in terms of revenue & costs) |
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Definition
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Term
| profit (in terms of price, variable costs, quantity, & fixed costs) |
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Definition
| (price - variable costs) * quantity - fixed costs |
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
| investment cost / profit per year |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| company revenue in the market / total market revenue |
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Term
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Definition
| company market share / largest competitor's market share |
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Term
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Definition
| sales - cost of goods sold |
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Term
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Definition
| gross profit - operating expenses - depreciation - amortization |
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Term
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Definition
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Term
|
Definition
| operating profit / revenue |
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Term
| EBITDA (earnings before interest, taxes, depreciation, & amortization) |
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Definition
| operating profit + depreciation + amortization |
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Term
| CAGR (compounded annual growth rate) |
|
Definition
| (ending value / beginning value) ^ (1 / time period) - 1 |
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Term
|
Definition
| a shortcut used to estimate how long a market, company, or investment would take to double in size; simply divide 72 by the annual growth rate to get an estimate for the number of years needed to double in size |
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Term
|
Definition
| cash flow / [(1 + discount rate) ^ (time period)] |
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Term
|
Definition
| present value = cash flow / discount rate |
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Term
|
Definition
| profit / shareholder equity |
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Term
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Definition
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Term
| price elasticity of demand |
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Definition
| (% change in quantity) / (% change in price) |
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Term
| cross elasticity of demand |
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Definition
| (% change in quantity for good #1) / (% change in price for good #2) |
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