BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Earnings before tax (EBT): This is a measure of a company’s financial performance. EBT is calculated by subtracting expenses from income, before taxes. It is one of the line items on a multi-step income statement.

Detailed explanation-2: -A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time.

Detailed explanation-3: -The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period. The P&L statement is one of three financial statements that every public company issues quarterly and annually, along with the balance sheet and the cash flow statement.

Detailed explanation-4: -Through the income statement, you can witness the inflow of new assets into a business and measure the outflows incurred to produce revenue. Profitability is measured by revenues (what a company is paid for the goods or services it provides) minus expenses (all the costs incurred to run the company) and taxes paid.

Detailed explanation-5: -Measuring Profitability Two best metrics to measure the financial performance of a company in terms of profitability are the net profit and the return on assets. The percentage of net profit is the amount of net profit divided by the amount of sales times 100.