Operational Profit

Operational profit is the amount reported on the income statement associated with regular operations. It is often confused with EBITDA and net profit. In general, operational profit is sales less cost of sales and expenses (overhead). It is defined differently in each business sector and the respective industries.

Railroad Stocks – Analysis 02/15/2020

Every one of the six railroad stocks are at or above their all-time highs. As of today, February 15, 2020, the various stock prices are as follows: Union Pacific 184.65; Norfolk Southern $206.85; Canadian National $93.93;
Kansas City Southern $173.64; Canadian Pacific $270.86; CSX $79.59.

In addition, the price to book ratios are also higher than last quarter. The key question: is there any value in any of the stocks? To do this, a table of various preferred ratios must be prepared and explained in a write-up. 

Two critical points of information are evaluated, both the gross profit margin and operational cash flow per share are explained in this article.

Performance Ratios

Performance Ratios

The most common thought among business owners, consultants, investors and students is the ‘bottom line’.  The proper word is of course ‘PROFIT’.  In business, the single number one reason to operate is to make a profit. 

EBITDA

EBITDA

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization. The value is generally known as operational profit before capital expenditures and tax obligations.

Net Profit Margin

Net Profit Margin

The net profit margin reflects the profitability of the company as a percentage of net sales. It is one of the performance ratios used in evaluating business. Interestingly, some consider it the most important ratio. These users of business ratios take a very simplistic approach towards business evaluation.