Credits, Revenue, Profit, and Risk

What it is and why it matters

Do not mix up these numbers:

• Credits are the company's in-game money that is free right now.
• Reserve is credits tied up in open buy orders or in contracts. You cannot spend them while the order or contract is open.
• Revenue is the amount received from a sale.
• Cost basis is what the sold goods cost you: the purchase, the mining, or the inputs plus the workshop fee.
• Profit is revenue minus cost basis.
• Company cash profit is credits plus reserves minus starting capital. Inventory is not included.
• Estimate is a forecast made before an operation. Until the goods are sold, it is not money.

The financial summary also includes a capital estimate that accounts for inventory: it is valued at the best local bid. Goods on a ship in transit are valued at zero, because they have no local bid.

Example

An example from the starting world on November 6: a trip with 40 Titanium Ore from Helios Port to Vega Station.

The fuel was burned from a tank you did not have to pay for, so cash grew by 240. The estimate accounted for replacing it and showed 204. Prices change, so your numbers may differ.

Ask the deputy:

"Break this trip down into investment, expected revenue, transport costs, available demand depth, and uncertainty."

Limitations and risks

The best price at another port does not mean it will still be available after the flight: bids are not reserved. Route risk is a numerical forecast. There are no attacks or ship losses in the game.

Common mistakes

• Calling an estimate profit before the sale.
• Treating the amount in a fill report as earnings. It shows price times quantity, without the cost basis.
• Forgetting that a buy order ties up credits even if the goods have not been bought yet.

What's next

See how to calculate a trip between stations and what liquidity is.