Net Revenue refers to the money a business retains from its sales after deducting returns, discounts, and allowances from the total gross revenue. The Example of Net Revenue A company sells products worth $50,000 in a month (this is Gross Revenue). During that month: How to Calculate Net Revenue Although the company generated $50,000 in
An income statement, often referred to as the profit and loss (P&L) statement, gives a summary of a company’s revenue, expenses, gains, and losses during a particular accounting period. This statement offers important insights into operations, management effectiveness, and how the company performs compared to others in the industry. Understanding the Income Statement It is
Gross profit margin is a key financial metric that analysts use to evaluate a company’s financial well-being. It’s the profit left after deducting the cost of goods sold (COGS). Gross profit margin indicates how much money a company earns after covering its business expenses. This metric is typically represented as a percentage of sales and
A gross-up refers to an extra sum of money added to a payment to account for the income taxes the recipient will need to pay on that payment. This is commonly seen when employees get cash benefits, such as severance packages, relocation costs, and cash bonuses. This practice is also found in executive compensation plans.
Geolocation is the ability to track a device’s whereabouts using GPS, cell phone towers, WiFi access points, or a combination of these. Since devices are used by individuals, geolocation uses positioning systems to track an individual’s location down to latitude and longitude coordinates, or more practically, a physical address. Both mobile and desktop devices can use geolocation, which is
Insurtech is all about using tech innovations to save costs and boost efficiency in the existing insurance industry model. The term is a blend of “insurance” and “technology,” taking a cue from the word fintech. Learn more about Insurtech It is based on the idea that the insurance sector is ready for some fresh ideas
P2P Insurance (Peer-to-peer insurance) is a service that allows a group of individuals to combine their funds to support one another against various risks. Usually, these individuals are family members, friends, or those who have a common interest. Policyholders enjoy greater control over management choices compared to traditional insurance firms, and they might receive refunds
An economy is a complicated network of consumers, businesses, and governments that create, use, and share goods and services, all working together to meet the needs of people living and working in it. An economy can include a whole nation, a specific region, a single industry, or even just one household. The History The term
A loss reserve is basically an estimate of how much an insurer expects to pay out for future claims. It’s usually made up of liquid assets, which help the insurer cover claims from the policies they underwrite. Figuring out these liabilities can get pretty complicated. Insurers need to consider how long the insurance contract lasts,
Macroeconomics is all about studying how an economy works, looking at markets, businesses, consumers, and governments. It dives into big-picture stuff like inflation, price levels, economic growth rates, national income, gross domestic product (GDP), and shifts in unemployment. Some of the main questions macroeconomics tackles are: What leads to unemployment? What triggers inflation? What sparks