TERRITORY 03

Know Your Numbers

You cannot borrow, price, or scale against numbers you do not have. This territory explains business financials in plain English: what each statement answers, how the numbers connect, and what a lender reads first.

Revenue and COGSGross marginP&LBalance sheetCash flowWorking capital

Definitions in this territory

THE STATEMENTS

COGS

COGS (cost of goods sold) is what the items you actually sold cost you — not what you spent on inventory during the period.