profitability
3 explainers · 12 quiz questions tagged “profitability”.
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How to Read an Income Statement
The income statement shows whether a company actually makes money. Walk from revenue down to net profit, and learn what gross, operating and net margins each reveal.
Understanding Profitability: Margins and Returns on Capital
Profitability ratios separate genuinely good businesses from merely big ones. Understand gross, operating and net margins, and the returns-on-capital trio — ROE, ROA and ROIC.
ROIC vs ROE vs ROI: The Complete Guide to the Three Return Metrics
ROI, ROE and ROIC all measure return on money, but each uses a different definition of “money in”. This guide explains the difference with worked examples — in beginner, intermediate and advanced versions — and shows why ROIC, not ROE, is the metric most tied to long-term value creation.
Quiz questions
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Difficulty 9/100 Profitability
What is the difference between revenue and profit?
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Difficulty 10/100 Profitability
What does EPS stand for?
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Difficulty 12/100 Profitability
On financial statements, what does "P&L" stand for?
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Difficulty 18/100 Profitability
What does net profit margin measure?
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Difficulty 18/100 Profitability
What does ROE stand for?
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Difficulty 20/100 Profitability
What does EBIT stand for?
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Difficulty 24/100 Profitability
Revenue is $200m and cost of goods sold is $120m. What is the gross margin?
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Difficulty 26/100 Profitability
A company has revenue of $500m and net income of $45m. What is its net margin?
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Difficulty 27/100 Profitability
For a cloud-software company, which cost most likely belongs in cost of revenue (COGS)?
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Difficulty 30/100 Profitability
What does EBITDA stand for?
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Difficulty 32/100 Profitability
Net income is $90m and shareholders' equity is $600m. What is ROE?
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Difficulty 34/100 Profitability
What is a "non-recurring" (one-off) item in a company's earnings?
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