Company And Financial Terms
Capital Expenditure
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Money spent to buy, build, improve, or maintain long-term assets.
Why it matters
Large capital spending may support future growth but can reduce available cash in the short term.
Company And Financial Terms
Earnings per Share
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The portion of a company’s profit attributable to each outstanding common share.
Why it matters
It makes profit easier to compare on a per-share basis, but can also change when the number of shares changes.
Company And Financial Terms
Gross Profit
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Revenue remaining after the direct cost of producing goods or delivering services is deducted.
Why it matters
It helps show whether the company can sell its products or services at a healthy markup.
Company And Financial Terms
Impairment
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A reduction in the recorded value of an asset when it is no longer expected to be worth its carrying amount.
Why it matters
An impairment can reduce reported profit and may signal that an investment or asset performed worse than expected.
Company And Financial Terms
Margin
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A percentage showing how much of revenue remains after a particular level of cost or expense.
Why it matters
Margins help investors see whether the company is becoming more or less efficient.
Company And Financial Terms
Net Income
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The company’s remaining profit after expenses, interest, and taxes have been deducted.
Why it matters
It shows whether the company ultimately earned or lost money during the period.
Company And Financial Terms
Operating Cash Flow
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Cash generated or used by the company’s normal business operations.
Why it matters
A company can report accounting profit while generating weak operating cash flow.
Company And Financial Terms
Operating Income
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Profit generated from normal business operations before interest and taxes.
Why it matters
It helps separate the performance of the main business from financing and tax effects.
Company And Financial Terms
Revenue
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The money a company earns from selling goods or services before expenses are deducted.
Why it matters
Revenue shows the scale of business activity, but growing revenue does not automatically mean growing profit.
