Aug 22 , 2024

6 Terms to Understand Before Starting a Business

By True Scoop

ROI (Return on Investment): Profitability relative to investment cost.

ROAS (Return on Advertising Spend): Revenue generated per unit spent on ads.

Working Capital: Current assets minus current liabilities.

Profit Margin: Percentage of revenue that is profit.

COGS (Cost of Goods Sold): Direct costs of producing goods sold.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Earnings from core operations before deductions.

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