Step 3: make finance and IM language decision-ready.
| Term | Meaning |
|---|---|
| Revenue | Total top-line sales before costs. |
| COGS | Direct costs to deliver products/services. |
| Gross Profit | Revenue minus COGS. |
| Gross Margin | Gross Profit divided by Revenue. |
| SG&A | Selling, general and administrative overhead. |
| EBIT | Earnings before interest and taxes. |
| EBITDA | EBIT plus depreciation/amortization. |
| Net Income | Profit after all costs including tax and financing. |
| Net Debt | Debt minus cash. |
| Net Cash | Cash exceeds debt. |
| EV | Enterprise value (equity plus net debt). |
| EV/EBITDA | Valuation multiple vs operating cash earnings proxy. |
| MOIC | Multiple on invested capital. |
| IRR | Annualized return over holding period. |
| ROIC | Return on invested capital. |
| FCF | Free cash flow after capex and operating needs. |
| Working Capital | Cash tied in receivables, inventory, payables. |
| QoE | Quality of earnings: repeatability and reliability. |