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"Net of Expenses" means after expenses. It's rather vague, as some call "Depreciation and Amortization" an expense while others don't; "Interest on Debt" is an expense, etc. In an accounting example, most would say "Earnings Before Interest and Taxes (EBIT)" instead of "Net of Operating Expenses," due to each firm's ability to classify its expenses differently.
It can also be used to signal what an analyst has taken out versus what has been left in during calculation. For instance, if we look at an investment, and it earns a net risk-adjusted 5% return, this means that the return figure has been adjusted for the risk associated with the vehicle, but that expenses have not yet been deducted from it. This provides a bit less ambiguity than the accounting terminology.
Hope this helps! :-)
What else can I help you with?
What is the formula for net operating expenses in corporations?
Formula for calculating Gross operating expenses and net expenses in Corporations?
Is net income the same as net earnings?
Yes, net income and net earnings is a businesses income minus the cost of goods sold, expenses, and taxes. These terms mean the exact same thing.
What is net income assets minus liabilities or revenues minus expenses?
Net Income is revenue minus expenses. Assets minus liabilities is Net Worth.
What is expenses minus income?
Expenses minus income is referred to as net income or net loss. If expenses exceed income, it results in a net loss, indicating a deficit in finances. Conversely, if income surpasses expenses, it results in a net income, reflecting profitability. This calculation is crucial for assessing financial health and budgeting.
Formula for calculating net profit?
Sales Less: Cost of sales Gross Profit Less: Admin Expenses Selling Expenses Other Expenses Net Profit
What is the formula for net operating expenses in corporations?
Formula for calculating Gross operating expenses and net expenses in Corporations?
What is net operating expenses i just want you to define the word net operating expenses?
Net operating expenses are the total of a companies income after the expenses have been deducted but before all the taxes have been deducted. This is the opposite of net profit.
Is net income the same as net earnings?
Yes, net income and net earnings is a businesses income minus the cost of goods sold, expenses, and taxes. These terms mean the exact same thing.
Are fixed expenses include in net income?
Net profit is calculated by taking in calculation all expenses incurred by the firm in the fiscal year. So it includes all fixed expenses as well as variable expenses to calculate net profit.
Does net loss occurs when expenses are less than revenue?
Net Income : When Revenue is greater than Expenses. Net loss : When Expenses are greater than Revenue. References : Basic Accounting (111) Book .
What is net income assets minus liabilities or revenues minus expenses?
Net Income is revenue minus expenses. Assets minus liabilities is Net Worth.
What is expenses minus income?
Expenses minus income is referred to as net income or net loss. If expenses exceed income, it results in a net loss, indicating a deficit in finances. Conversely, if income surpasses expenses, it results in a net income, reflecting profitability. This calculation is crucial for assessing financial health and budgeting.
How do you calculate net loss?
Identify and total all operating expenses for the period. Expenses include advertising, marketing, sales representative salaries, sales commissions, professional fees, office supplies etc. Subtract the total operating expenses from gross profit to calculate net loss.
Formula for calculating net profit?
Sales Less: Cost of sales Gross Profit Less: Admin Expenses Selling Expenses Other Expenses Net Profit
Net income plus operating expenses is equal to?
Net income plus operating expenses equals gross profit, or total revenue. To calculate net income, accountants subtract total expenses from total revenues.
Definition of net income?
The amount by which revenue exceeds expenses. If expenses exceed revenue it is a net loss.
What is net income?
Net income is your revenues minus your expenses. For example, if a store had $100,000 in sales, but their expenses for rent, employees, supplies, etc is $60,000 then they had a net income of $40,000.
