Liikevoimans

Liikevoimans is a Finnish term that translates to "operating profit" or "profit from operations" in English. It represents a company's profitability before considering interest expenses, taxes, and other non-operating income or expenses. Essentially, liikevoimans indicates how well a company's core business activities are performing. It is a key metric used to assess the efficiency and success of a company's operational management.

To calculate liikevoimans, one typically starts with the company's revenue (liikevaihto) and then subtracts all operating costs. These operating costs include the cost of goods sold, salaries, rent, marketing expenses, and depreciation, among others. The resulting figure shows the profit generated solely from the company's primary business operations.

Analysts and investors often examine liikevoimans to understand a company's underlying financial health and its ability to generate profits from its everyday activities. A consistently growing liikevoimans suggests that the company is effectively managing its operations and increasing its profitability. Conversely, a declining liikevoimans might signal issues with pricing, cost control, or sales volume within the core business. It is a crucial indicator for comparing the operational performance of different companies within the same industry, as it removes the influence of financing decisions and tax structures.