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Key Difference – ROA vs ROI Investors always attempt to generate higher returns for their investments and frequently compare investment options and companies to invest in. Companies want to make higher profits with greater efficiency to be stabilized and create shareholder value. There are a number of investment appraisal options the investors and businesses […]
Key Difference – Net Income vs Net Profit The difference between net income and net profit can be quite confusing since both these terms are often used interchangeably. However, it is important to understand different components that are included in each of these concepts since both provide various indications.The key difference between net income […]
NOPAT vs Net Income A clear understanding on the difference between NOPAT and net income is needed if you are to analyze the financial statements, especially the income statements, to study the performance of a business. The main aim of running a business is making a profit. In order to make a profit, the […]
Gross vs Net Income A business of any kind is run with the aim of making a profit. In order to make a profit, the firm must ensure that its income surpasses its expenses. There are many types of income that are recorded on a firm’s income statement in order to assess a firm’s […]
Income vs Revenue Income and revenue are two important components of a financial statement. If you look at the financial statement of any company the first entry that is made is of the sales or the revenue generated. This is the figure that tells the amount of cash flow in the business during the time […]
Cash Flow vs Net Income Cash flow and net income are terms often heard in accounting. People often confuse between cash flow and income thinking it to be the same. But in reality, these are totally different concepts though related with availability of money. While cash flow refers to cash that comes in and goes […]
