Examlex
Financial ratios used to determine credit risk include an assessment of
Gross Profit
The financial metric that represents the difference between revenue and the cost of goods sold (COGS) before deducting overhead, payroll, taxation, and interest payments.
Net Sales
The revenue a company earns from sales after subtracting the money refunded for returns, compensation for damaged or missing items, and any discounts offered.
Net Purchases
The total amount of purchases made by a business minus returns, allowances, and discounts.
Intraperiod Tax Allocation
The process of apportioning income taxes within a single fiscal period among different sections of a financial statement.
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