Consideration Base

»» Costs: A monetary value of expenditures for supplies, services, labor, products, equipment and other items purchased for use by a business or other accounting entity. Synonym: Expenses.

»» Gross Profit: A company’s revenue minus its cost of goods sold. Gross profit is a company’s residual profit after selling a product or service and deducting the direct costs associated with its production and sale. Synonyms: Gross Income, Gross Margin.

»» Net Asset Value: The value of an entity’s assets less the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value. Synonym: Dollar Amount of Shares.

»» Net Profit: Equal to the gross profit minus overhead expenses minus interest payable for a given time period. Synonym: Net Income.

»» Net Sales: Revenues earned by a company for selling its products or rendering its services. Also referred to as revenue, they are reported directly on the income statement as Sales or Net sales. Synonyms: Amounts Raised, FOB price, Gross Proceeds, Gross Receipts, Gross Revenue, Gross Sales, Net Billings, Net Proceeds, Net Receipts, Net Revenues, Sales Price, Sales Proceeds, Sales Revenue. Consideration Base

»» Operating Profit: A measure of a firm’s profit that excludes interest and income tax expenses. It is the difference between operating revenues and operating expenses. Synonyms: EBITDA, EBIT.

»» Principal Amount/Face Value: The amount borrowed, such as the face value of a debt security, or the part of the amount borrowed which remains unpaid, excluding interest. Synonyms: Amount of Receivables, Invoice, and Principal Balance.