1) Gross Operating Revenue
It is all the operating revenue generated by a company during a certain period before taxes and deductions on sales.
2) Cost of Goods Sold (COGS)
The Cost of Goods Sold (COGS) represents the total amount employed on the production of goods sold by a company. In the case of M. Dias Branco, the COGS includes the operational costs of raw materials (wheat, vegetable oil, sugar, third party flour, third party vegetable shortening and other supplies), packages, labor, indirect costs, depreciation, amortization and others.
3) Gross Profit
The Gross Profit is given deducting the Cost of Goods Sold (COGS) from the Net Revenue.
4) Selling, General and Administrative Expenses
Represents the amount spent by the company to cover expenditures with salaries and other commercial and administrative employees expenses, as well as advertising, propaganda and other expenses with media institutions.
5) EBITDA
EBITDA means “Earnings Before Interests, Taxes, Depreciation and Amortization” and represents the period net profit plus taxes over the profit, net financial expenses from financial income, depreciation, amortization and depletion.
6) Financial Expenses/Financial Income
The financial expenses come from remuneration to third party capital (banks and other financial institutions) as paid interests, monetary restatement, bank fees, etc. The financial income aims to compensate the expenses through applications, received interests, among others.
7) Income and Social Contribution Taxes
Income and Social Contribution Taxes are paid concerning the Income Tax (“Imposto de Renda de Pessoa Jurídica – IRPJ”) and Social Contribution Tax (“Contribuição Social sobre o Lucro Líquido – CSLL”).
8) Net Income / Loss
After all costs and expenses deduction (including taxes) of the period’s generated revenue, is obtained the net income (if is a positive result) or loss (if is a negative result).
9) Assets and Liabilities
The assets represent all the company’s properties and rights, it may be current (cash, inventories, Trade accounts receivable, etc) or noncurrent (property, plant and equipment, intangible, investments, etc). The liabilities represent all the company’s obligations and debts, it also may be current (represents all the commitments that the company must pay in a period equal or less than one year) and noncurrent (commitments that the company must pay in a period exceeding one year).
10) Shareholders’ Equity
The shareholders’ equity represents the total book value that the partners or stockholders own in the form of quotas or shares.
11) Price / Earnings (P/E)
Ratio obtained from the division of the stock market price by the projected earnings per share. It aims to show how many years would be necessary to recover the invested capital in a stock purchase by receiving the company’s generated profits in form of dividends.
12) Net Debt / EBITDA
This debt ratio aims to measure the company’s leverage by indicating the number of years that it would need to pay all its obligations with third parties.
13) EBITDA Margin
The EBITDA margin is obtained from the division of the EBITDA by the Net Revenue, demonstrating the representativeness of the EBITDA in the company’s Net Revenue.
14) EVA
EVA means Economic Value Added and can be defined as the result obtained by the company that exceeds the minimum compensation by the capital owners, is an indicator that is directly related to the creation of shareholder’s wealth.
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