What are the different business terms

At Sahu Foundation, we understand the importance of financial management for interior design businesses. Our team of experienced interior designers, led by Ar. Sanjeev Kr. Sahu, are experts in financial management and can help you understand and use these important business terms to improve the financial health of your business. Visit our website at http://www.sahufoundation.com/ or give us a call at 8252434235 to learn more about our services and how we can help you improve your financial management strategies.

1. Gross Profit Margin: Gross profit margin is a financial ratio that measures the profitability of a business by dividing gross profit by revenue. It is used to determine the percentage of revenue that is left after accounting for the cost of goods sold.
2. Net Profit Margin: Net profit margin is a financial ratio that measures the profitability of a business by dividing net profit by revenue. It is used to determine the percentage of revenue that is left after accounting for all expenses, including taxes and interest.
3. Return on Investment (ROI): Return on investment is a financial ratio that measures the profitability of an investment by dividing the gain from the investment by the cost of the investment. It is used to determine the efficiency of an investment and the potential for future growth.
4. Break-Even Point: The break-even point is the point at which a business’s revenue equals its costs, and the business is generating no profit or loss. It is used to determine the minimum level of sales that a business needs to achieve in order to cover its costs.
5. Working Capital: Working capital is the difference between a business’s current assets and its current liabilities. It is used to measure a business’s liquidity and its ability to meet short-term obligations.
6. Cash Flow: Cash flow is the amount of cash that is generated or used by a business over a specific period of time. It is used to measure a business’s financial health and its ability to generate cash.
7. Debt-to-Equity Ratio: The debt-to-equity ratio is a financial ratio that measures a business’s financial leverage by dividing its total liabilities by its total equity. It is used to determine the degree to which a business is using debt financing to finance its operations.
8. Asset Turnover Ratio: The asset turnover ratio is a financial ratio that measures how efficiently a business is using its assets to generate sales. It is calculated by dividing a business’s revenue by its total assets.