Profit

AKA "bottom-line growth", how much money is actually made.

Profit = Revenue - Expenses (costs of goods sold, operating expenses, taxes and interest)

Paid out to loaners in the form of debt repayment and shareholders in the form of dividends.

Businesses exist to "deliver benefits to customers at a cost that allows the company to earn an adequate return on its invested capital" (Gareth O'Connor)

Related metrics:

• Profit margin = Profit / Revenue
• Earnings per share (EPS) = Net income (Profit) / Earnings per share (Price shares sold at)
• Price-earnings (PE) ration = Price per share / earnings per share
• Market-to-book ratio = Market value per share / book value per share = (Share price * Number of outstanding shares) / (Total value of assets - Total value of liabilities)