Glossary

Financial terms, explained simply

Clear definitions of the financial terms that appear in Indian company filings and reports.

EBITDA

Earnings before interest, taxes, depreciation and amortisation — a proxy for operating cash profitability.

Revenue

The total income a company earns from its ordinary business activities before any costs are deducted.

Net worth

A company's total assets minus its total liabilities — the shareholders' residual stake.

Balance sheet

A statement of a company's assets, liabilities and equity at a point in time.

Profit and Loss (P&L)

A statement summarising revenue, costs and the resulting profit or loss over a period.

Debt-to-Equity Ratio

Total debt divided by shareholders' equity — a measure of financial leverage.

Current Ratio

Current assets divided by current liabilities — a short-term liquidity measure.