Operating Profit vs EBITDA: What Matters in Planning?
Many teams face the same situation – operating profit looks solid, EBITDA tells a slightly different story. This often happens in manufacturing, pharma, and FMCG companies with large asset bases and regular investments. On paper, both metrics look healthy. Yet the direction and scale of change may differ. Both metrics matter. Still, they […]
How to Handle Variable Expenses for More Accurate Forecasts
Forecasting is only as good as the numbers behind it. And variable expenses are often misunderstood. These are costs that rise or fall with business activity, like: Raw materials Packaging Shipping and transport Sales bonuses and commissions Energy and utilities Read more: A Complete Guide to Financial Statement Analysis for Strategy Makers They […]
Net Earnings vs Net Income: Are You Measuring the Right Thing in Your P&L?
Net earnings and net income often appear together in reports, dashboards, and board materials. On paper, they look the same. Both sit at the bottom of the P&L. But in practice, they can mean different things depending on who uses them and why. For finance teams in complex companies, even small differences in these […]
Quick Ratio vs Current Ratio: Which One Tells You More About Liquidity?
Quick and Current ratios are two of the most common tools for assessing short‑term financial health. While they often appear side by side in financial reports, they serve very different purposes. Sometimes, using them interchangeably can lead to incorrect conclusions about cash availability and operational sustainability. Read more: A Complete Guide to Financial Statement Analysis […]
Net Income vs Net Profit: What’s the Difference, and Why It’s Important for Reporting
If you’ve ever had a discussion where someone says “net profit” and someone else says “net income“, you’ve probably asked yourself: Are they talking about the same thing? In many companies, these terms are used interchangeably. And in most cases, that’s fine. But in complex organizations, especially those with multiple business units, international operations, […]
EBIT vs EBITDA: Which Metric Tells You More
EBIT and EBITDA are metrics that show up in every financial report, board deck, and investor meeting. In day-to-day planning, using them interchangeably often creates confusion, and bad decisions. Depending on which metric you rely on, you could paint a very different picture of operational performance, cost discipline, or investment needs. EBITDA might help […]
Revenue vs Gross Profit: Understanding the Difference to Avoid Planning Errors
Revenue and gross profit appear in almost every financial report. However, many teams still mix them up or analyze them separately. As a result, planning mistakes become visible only after problems start. Read more: A Complete Guide to Financial Statement Analysis for Strategy Makers In many businesses, growing revenue looks like success. Meanwhile, gross […]
COGS Explained: Why It’s the First Thing You Should Fix in Financial Planning
Wrecked margins, pricing, and forecasts: sounds like a real nightmare. But even a small mistake in COGS (Cost of Goods Sold) can bring it to life. COGS tells you the real cost of making your product. That includes materials, labor, and production overhead. If it goes into the product, it belongs in COGS. […]
Revenue vs EBITDA: Which Metric Should Drive Your Strategic Planning
When it comes to financial planning, the two metrics you hear about most are revenue and EBITDA. Although connected they are showing completely different metrics: revenue shows how much you’re selling, and EBITDA shows how efficiently you’re running the business. If you’re working on next year’s budget, aligning department goals, or preparing a board […]
Best Financial Analysis Tools in 2026: Compare Features & Pricing
Financial analysis software allows for more than crunching numbers – it reveals insights that drive strategy. Selecting the proper one, however, can be overwhelming, especially when your staff is growing, procedures are getting complex, and you don’t have time to waste on clunky systems. If your staff is spending hours attempting to tame spreadsheets […]