Examlex
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Residual Income
The amount of income that an individual has after all personal debts, including the mortgage, have been paid. In a corporate context, it's the profit remaining after deducting the cost of capital.
DuPont Formula
A formula that breaks down Return on Equity into three parts: profitability, operating efficiency, and financial leverage, to analyze a company's financial health.
Profit Margin
A profitability ratio calculated as net income divided by revenue, showing the percentage of profit made from sales.
Income From Operations
The profit realized from a business's operational activities, calculated before taxes and interest are deducted.
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