Liikevoitoton

Liikevoitoton is a Finnish term that translates to "operating loss" or "loss from operations" in English. It refers to a financial situation where a company's revenues from its core business activities are less than its operating expenses during a specific accounting period. This calculation typically excludes interest expenses and income taxes, focusing solely on the profitability of the company's primary operations.

Key components that determine liikevoitoton include sales revenue, cost of goods sold, and operating expenses such as salaries, rent, marketing, and administrative costs. A liikevoitoton indicates that the company is not generating enough income from its day-to-day operations to cover its operational costs. It is a crucial indicator of a company's operational efficiency and its ability to sustain its business model.

A persistent liikevoitoton can signal underlying problems with a company's pricing strategy, cost management, product demand, or overall business strategy. While a company might still be profitable overall due to other income sources (like investments) or tax benefits, a liikevoitoton is a warning sign that the core business is struggling. Investors and analysts closely monitor this metric to assess the health and sustainability of a company's operations.