The Financial Fix of the Week
Get your weekly finance fix. Read these clear definitions of key financial terms and learn why they are important.
Cost of Goods Sold, or COGS, is also called cost of sales (COS) or cost of revenue. COGS is the category of expenses directly related to producing a product or service. Read More
Revenue (also known as sales) refers to the value of what a company sold to its customers during a given period. On the income statement it is the top line. Read More
Liquidity ratios tell you about a company’s ability to meet all its financial obligations, including debt, payroll, payments to vendors, taxes, and so on. Read More
Gross profit margin (also called gross margin or gross profit margin percentage) is how much out of every sales dollar is left after Cost of Goods Sold (COGS) is subtracted from Revenue. Read More
Just like in any field, finance and accounting use lots of acronyms. Here are some of the most common acronyms that are found in the income statement.
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