Key figures : P&L – EBIT, EBITDA, NOPAT, Net profit

From gross profit to EBIT

In our KPI series we’re talking today about the terms of the profit and loss statement.

The breakdown is made as following:

+ Sales
– Cost of goods sold (COGS)

= Gross result / Contribution

– Operating expenses (Personnel, Research & Development, Marketing, Sales, Admin etc.)

= EBITDA (earnings before interest taxes and amortization)

– Depreciations
– Accruals

= EBIT (earnings before interest and taxes)

– Tax result

= NOPAT (net operating profit after taxes)

– Financial result

= Net Profit

This breakdown is the 1 x 1 for accountants and controllers. With these terms, comprehensive key figure systems can be developed.

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