Profitability Glossary

Browse 4 profitability terms defined in plain English, from the cultural dictionary of computing.

4 Profitability Terms

Break-Even: The point where revenue equals costs, so the business is no longer losing money on a net basis. Founders and boards track break-even closely when capital is...
EBITDA: Earnings before interest, taxes, depreciation, and amortization, a financial metric used to approximate operating performance before certain non-operational...
Operating Margin: Operating income expressed as a percentage of revenue, showing how much profit remains after normal operating costs but before interest and taxes. It is a core...
Profit Margin: Profit expressed as a percentage of revenue, showing how much of each dollar remains after costs at the relevant level are removed. The exact meaning depends...