Examlex
Profit margin is calculated by dividing profit by net sales.
Tax Shield Approach
A method used in financial analysis to account for the benefits of certain deductions, such as interest or depreciation, which reduce taxable income and thus tax liability.
Operating Cash Flow
Cash generated from the normal operating activities of a business over a specific period, excluding capital expenditures and investments.
Depreciation
The methodical distribution of the expense of a physical asset across its lifespan, representing its use, deterioration, or becoming outdated.
Perfect Vacuum
An idealized state with no matter or particles present, and hence no pressure or air, which is physically unattainable but used as a baseline or reference point.
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