Relationship between different term Sales,GP,EBIT,EBT,NP and Retained earning.

Started by TechShristi, November 29, 2013, 12:15:49 pm

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TechShristi

Units of Goods Sold X Per unit selling price = Sale Revenue

Sale Revenue - Cost of Good Sold - Other Direct Cost = Gross Profit

Gross Profit - Overhead expenses =EBIT (Earning before Interest and tax )

EBIT - Interest = EBT (Earning after Interest and before tax)

EBT
- Tax = Net profit or PAT

PAT - Dividends = Retained earnings

TechShristi


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