Operating Expenses are expenses which are paid from the gross profits of the company. Principal is the original amount of a loan. The rate of interest is based on the original amount of the loan. Ratio Analysis is the use of a variety of ratios in analyzing the financial performance and condition of a company. Total Assets are the total amount of assets we have as of a certain date.
Total assets equal current assets plus fixed assets.
Fixed assets are long-term assets like buildings and machinery. Remember that fixed assets are things owned over the long run. Variable Costs are any costs or expenses that vary with changes in the volume of operations over a specified period. Inventory is a variable cost, also known as Cost of Goods Sold .