Business Profitability

Gross Profit
Gross profit, also known as gross margin or gross profit margin, is the difference between a company’s sales revenue and its cost of goods sold (COGS), excluding operating expenses such as finance, administration, and distribution costs.
Net Operating Income (NOI)
Net Operating Income (NOI) is a key metric in real estate and business investment that measures the profitability of an income-generating property before costs like taxes and financing expenses are considered.
Profit Squeeze
An expression that indicates increasing difficulty in maintaining the same amount or rate of profit due to reduced sales, lower prices, rising production costs, financing costs, administrative expenses, or taxes.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.