Net Sales
The total revenue generated from the sale of goods or services during a specific time period, before any deductions.
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EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
A measure of a company's overall financial performance, often used as an alternative to earnings or net income in some contexts.
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Depreciation & Amortization (D&A)
Non-cash expenses that reduce the value of a company’s assets over time due to usage or obsolescence.
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EBIT (Operating Income)
The profit a company generates from its operations, excluding interest and taxes.
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Tax
The amount of taxes the company is expected to pay on its earnings.
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NOPAT (Net Operating Profit After Tax)
Calculated by subtracting taxes from operating income. NOPAT represents potential cash earnings if the company had no debt.
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Depreciation & Amortization (D&A)
Although D&A are non-cash expenses, they are added back to NOPAT in cash flow calculations since they don’t involve actual cash outflows.
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Capex (Capital Expenditures)
The company’s spending on physical assets like property, industrial buildings, or equipment.
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Change in NWC (Net Working Capital)
The change in current assets minus current liabilities between periods, indicating the cash invested in or released from operations.
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Changes in Non-Interest Bearing Assets/Liabilities
Refers to changes in assets or liabilities that do not bear interest and can impact cash flow.
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Tax Shield on Interest
The tax savings derived from interest payments on debt, as these payments are deductible from taxable income.
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Interest Expense (Net)
The net amount of interest paid on debts.
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Change in Net Debt
Reflects the change in a company’s debt level, indicating either a cash inflow from taking on more debt or a cash outflow from repaying debt.
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Change in Investments
Represents the cash spent or received from changes in investment levels.
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Flow to Equity
The cash flow available to shareholders after all expenses, debts, and reinvestments have been accounted for.
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Other Effects
Any other items that can influence cash flow but don’t fit into the categories above.
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Net Income
The final amount of cash expected to be generated after all adjustments, representing the "bottom line" of the cash flow statement.