1. Gross Operating Revenue

It represents all the services rendered during a certain period, before discounts to clients, returns or taxes, or other adjustments.

2. Gross Profit

Net revenue less the cost of services rendered.

3. Selling, General and Administrative Expenses

These expenses usually include the salary of employees related to sales, the company’s management, advertising, and communication, among others.


Earnings Before Interests, Taxes, Depreciation and Amortization.

5. Financial Revenue/Expense

This account includes interest income and expenses and commissions related to financial transactions.

6. Income and Social Contribution Taxes

It reflects the expenses related to the payment of income and social contribution taxes.

7. Profit/Loss

It is also referred to as bottom line, as this is the last item of the income statement. It represents the remaining profit after all costs and expenses (including taxes) deducted from total revenue in a certain period. If result is positive, we refer as profit, if negative, we refer as loss.

8. Assets

It represents the company’s resources employed to generate revenue. Assets may be physical (cash, inventories, properties and equipment) or intangible assets (goodwill, trademark, patents).

9. Liabilities

It represents the company’s obligations. Liabilities include debt with banks, creditors, suppliers, government taxes, among others.

10. Equity

It represents the shareholder’s investment in the company via capital contribution or profit reinvested. The equity value corresponds to total assets less total liabilities.

11. Price/Profit (P/P)

Price of a share divided by earnings per share. This index provides investor with a parameter of how much he is paying for the capacity of generating the company’s profit.

12. Net Debt/EBITDA

This index measures the company’s financial leverage.

13. EBITDA Margin

EBITDA/ net revenue ratio.

14. EVA

EVA is the economic value added, also known as residual profit and considers that the profit exists only when the company covers all its operating expenses and also the costs of capital employed in business, whether owned or of third parties.