Describe the Difference Between Goals and Objectives

question 29

Essay

Describe the difference between goals and objectives.

---

Definitions:

EBIT

This metric, known as Earnings Before Interest and Taxes, calculates a business's profitability without taking into account expenses from interest and taxes.

ROE

Return On Equity represents a financial performance metric that is obtained by dividing a company's net income by its shareholders' equity, demonstrating the company's effectiveness in using investor funds to grow earnings.

EPS

Earnings Per Share, a key indicator of a company's profitability, calculated by dividing the company's net income by its total number of outstanding shares.

DFL

Degree of Financial Leverage, a ratio measuring the sensitivity of a company's earnings per share to fluctuations in its operating income, due to changes in its capital structure.