Liikevoima

Liikevoima is a Finnish term that translates to operating profit or earnings from operations. It represents a company's profitability before considering interest expenses, taxes, and other non-operating income or expenses. Essentially, it reflects the core business performance.

Liikevoima is a key metric for assessing how well a company's primary activities are generating profit. It is calculated by subtracting all operating expenses, such as cost of goods sold, salaries, rent, and marketing, from the total revenue. This figure is crucial for comparing the operational efficiency of different companies within the same industry.

Analysts and investors often examine liikevoima to understand a company's underlying profitability and its ability to generate cash from its main business. A rising liikevoima indicates that the company's core operations are becoming more profitable, while a declining trend might signal issues with pricing, cost control, or sales volume. It is a vital component in financial statement analysis and is often used in conjunction with other profitability ratios.