The next set of words comes from company results and valuations. They describe what a business earned, what it paid out to owners, and what it owes.
| Term | Plain-English meaning |
|---|---|
| Revenue | The total money a company collected from customers. |
| Profit | What is left after costs are subtracted from revenue. |
| Earnings | Another word for a company's net profit — the bottom line. |
| EPS | Earnings per share — net profit divided by the number of shares. |
| Dividend | A share of profit paid out in cash to shareholders. |
| Yield | The dividend expressed as a percentage of the share price. |
| Debt | Money a company has borrowed and must repay, usually with interest. |
Seven more words that turn up in almost every set of results.
Terminology explorer
Tap any term to see a plain-English explanation.
Share
One unit of ownership in a company.
If a company has 1 crore shares and you own 1 lakh of them, you own 1% of the company.
Revenue, profit and earnings
Revenue is the top line — money collected from customers before any costs. Profit is what remains after costs are subtracted, and it is measured at several levels. Earnings usually means net profit, the very bottom line after interest and tax. A company can grow revenue quickly and still see earnings fall if its costs rise faster.
Dividend and yield
A dividend is a share of profit that a company chooses to pay out in cash to its owners. Many companies keep part of their profit to reinvest instead. Yield expresses the dividend as a percentage of the share price, so you can compare income from different shares.
Dividend yield = Annual dividend per share ÷ Share price × 100
A ₹4 dividend on a ₹100 share is a 4% yield.
High yield is not always good news