What are financial magnitudes
Financial figures are indicators used to measure the economic situation of a company or a market. These figures are essential for strategic decision-making and financial control.
Key financial figures
The main financial figures include net profit, EBITDA, ROI, ROE, cash flow, current liquidity and debt, among others. Each of these figures provides specific information about an organization's financial health.
Net profit
Net profit is the difference between a company's income and expenses in a given period. It represents the final result of operations and is one of the main indicators of profitability.
EBITDA
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization, or earnings before interest, taxes, depreciation and amortization. It is used to evaluate a company's operating performance.
ROI
ROI, or Return on Investment, is an indicator that shows the return obtained from an investment made. It is calculated by dividing the profit made by the initial investment.
ROE
ROE, or Return on Equity, is an indicator that measures the profitability of the equity invested in a company. It is calculated by dividing net profit by shareholders' equity.
Cash flow
Cash flow is the inflow and outflow of a company's financial resources over a given period. It is essential for ensuring the financial health and sustainability of the business.
Current liquidity
Current liquidity is an indicator that shows a company's ability to meet its short-term commitments. It is calculated by dividing current assets by current liabilities.
Indebtedness
Indebtedness is the ratio between a company's total debts and its net worth. It indicates the organization's degree of indebtedness and its ability to pay.