Profitability

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
EBITDA is a measure of a company's overall financial performance and is used as an alternative to earnings or net income in some circumstances. It strips out potentially non-operating and non-cash factors like interest, taxes, depreciation, and amortization.
Internal Rate of Return (IRR)
The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of potential investments or compare the expected profitability of different investments. It is the discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis.
Net Income
In accounting, the term 'Net Income' refers to the amount remaining after all expenses have been deducted from total revenue. It is a key measure of profitability and is also known as the bottom line. In appraisal, net income can often be termed as net operating income, and in personal finance, it refers to an individual's take-home pay after all taxes and deductions have been subtracted.
Net Present Value (NPV)
Net Present Value (NPV) is a crucial financial metric used to evaluate the profitability of an investment. By assessing the present value of expected future cash flows, NPV helps investors and businesses make informed decisions.
Positive Cash Flow
Positive cash flow in real estate indicates that rental income exceeds property-related expenses, ensuring profitability and sustainability.
Rate of Return
The Rate of Return is the percentage gain or loss on an investment relative to its cost, offering a snapshot of the investment's profitability.
Rate of Return on Investment (ROI)
The Rate of Return on Investment (ROI) measures the profitability of an investment, determining the efficiency of various investment choices.
REORIENTATION
Reorientation refers to the strategic process of changing the market appeal of a property to attract a different target audience, often to enhance its occupancy and profitability.
Return on Equity (ROE)
Return on Equity (ROE) is a measure of the profitability and financial performance of a business, indicating how much net income is generated as a percentage of shareholders' equity.
Return on Investment (ROI)
Return on Investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested. ROI is often expressed as a percentage and is commonly used to evaluate the efficiency or profitability of an investment.
Return on Investment (ROI)
Return on Investment (ROI) measures the financial return on an investment as a percentage of the investment's cost, providing an indicator of profitability.

Real Estate Lexicon

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