Netokäive

Netokäive is a term used in business and accounting, particularly in Estonia, referring to net sales or net revenue. It represents the total revenue generated from sales after deducting returns, allowances, and discounts. Essentially, it is the actual amount of money a company expects to keep from its sales after accounting for various sales adjustments.

The calculation of netokäive is crucial for understanding a company's true sales performance. Gross sales, the total amount billed to customers, can be misleading if significant returns or discounts are common. By subtracting these items, netokäive provides a more accurate picture of the revenue that directly contributes to a company's profitability.

Businesses use netokäive in various financial analyses. It is a key component in calculating gross profit, which is netokäive minus the cost of goods sold. Furthermore, netokäive is often used to track sales trends, compare performance against competitors, and forecast future revenue. Its importance lies in offering a cleaner, more realistic measure of a company's sales activity and its ability to generate revenue from its core operations.