Finance Definitions
Income generated for a company
Revenue
an activity recorded that drives overhead expenses
cost driver
The activity or business of selling products
Sales
This is known as growth of a business through internal processes
Organic growth
Costs incurred to create a product
Product costs
The acronym SG&A stands for
Selling, General and Administrative Expenses
Sales
Costs that don't change with production levels
Fixed Costs
costs that change depending on how much a company sells or produces
Variable costs
Action you took to "drive revenue"
Revenue driver
Its what EBITDA stands for
Earnings before Interest, Taxes, Depreciation and Amortization
Income from all Medcan streams of business are located under this
Revenue
This statement summarizes the revenues, costs, expenses and profit/loss for a specific period
Profit and Loss Statement (PNL)
formula that measure the degree to which you can increase operating income by increasing revenue
Operating leverage
Metric to compare the merits of making one product over another
Product Contribution
Direct cause of a business expense
Cost driver
HR salaries are captured under this line item
SG&A
This is a measure of a company's operating profit as a percentage of revenue
EBITDA margin
document that outlines the reason for pursuing a project or business decision
Business case
Represents the cash profit generated by the company's operations
EBITDA
This line item includes business costs not directly attributable to making or selling a product
SG&A
Marketing for AHA is considered this cost
Product cost
Money spent on expenditures not related to the running of the operation of the company
Discretionary spend
This is Medcan's strategic objective
17-20% EBITDA growth YoY
Selling price per unit minus the variable cost per unit
Product contribution margin