The statement of cash flows is the last statement and focuses on the companies inflow and outflow of cash. The statement of cash flows is made out of three ...

ARR is a formula that represents the expected return on an investment or asset. The formula takes the average annual profit of an asset and divides it by th...

Cost of Goods Sold, or COGS is derived from the direct costs of producing the goods sold by a company. COGS only includes direct costs such as materials and...

Expenses are the costs associated with operations a business does to generate revenue. Expenses are reported on the income statement in two ways: Cash Ba...

Revenue is income that is generated from business activities. Revenue, or sales, is/are reported on the income statement, and is what all the company’s cost...

Turnover is an accounting concept used to describe how quickly a business conducts its operations. Turnover is usually measured by seeing how fast a company...

NVP is a tool used to determine what the value of a future stream of cash flows would be today. The NPV is used to determine whether to take on new investme...

Burn rate is usually associated with the rate at which a new company spends its venture capital. Usually, the burn rate is calculated on a monthly basis. Me...

The rule of 40 is a metric used to quickly measure the attractiveness of a SaaS company. The “Rule of 40 Number” is calculated by: Growth% + Profit% = Your ...

Cost of revenue refers to the total direct cost of manufacturing and delivering a product. The main difference between COR and COGS is that COR takes into a...