Finance

Revenue refers to the income you get from a business activity in a given time. You can calculate earnings by multiplying the per-unit cost of goods or services by the number of units sold.

“Assets” refers to your business’ cumulative financial holdings. These are usually classified as current or fixed. Current, or short-term, assets include cash or inventory. Fixed, or long-term assets, include equipment or land.
“Liabilities” are debts your business owes another person or entity. Like assets, you’ll have to define liabilities as current or long-term. Current, or short-term, liabilities might include an expense payable to a supplier. Many business loans are long-term debts.

Cash flows are the net amount of cash and cash-equivalents being transferred into and out of a business. Cash received are inflows, and money spent are outflows. At a fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows. Generally, the company’s performance is seen by its ability to generate cash flows from its normal business operations.

Accounts receivable: This is the amount of money your customers or clients owe your business for goods or services you supply. This total value can give you a snapshot of the amount owed to your business at any given time.
Accounts payable: Accounts payable is a measure of how much you owe your creditors for goods or services supplied to you.

Net income of a business defines a company’s total earnings or profit. Simply put, net income is what you get when you subtract all expenses (including tax expenses) from revenue. When a company’s net income increases, it’s normally a result of either revenue increasing or expenses being slashed. It goes without saying that an increase in net income is generally perceived as positive and factors into a stock’s performance.

EBITDA stands for earnings before interest, tax, depreciation and amortization and is calculated by subtracting operating expenses from revenue and adding back depreciation and amortization to operating profit (EBIT). On a company's income statement, EBITDA is a line item above net income that excludes other non-operating expenses, as well as interest expenses and taxes. It can be argued that compared to net income, EBITDA paints a rawer image of profitability.