![]() ![]() ![]() Interest Expense the payments made on the company's outstanding debt. Net Income Before Interest and Tax net income before taking interest and income tax expenses into account. Gross Margin also called gross profit, this is revenue minus COGS Operating Expenses any expense that doesn't fit under COGS such as administration and marketing expenses. For example, if a loaf of bread costs 50 cents to make, then COGS is 50 cents. Each item that has a line above the number means that it is a subtotal or total (the net income usually has a bold or double line below the number).īelow is the typical layout of an income statement: Income Statement Revenue the proceeds that come from sales to customers Cost of Goods Sold (COGS) an expense that reflects the cost of the product or good that generates revenue. Each subsequent line deducts expenses and costs from the revenue figure until you finally get to the bottom line (net income). The top line lists the revenue (sales) brought in. The statement is looked at from top to bottom. The income statement is simply designed, and even simpler to read. While some new companies are not be expected to be profitable for a few years, over the long run, no company can survive without profits. Profit is, after all, the reason companies are in business. In essence, an income statement tells you how much money a company brought in (its revenues), how much it spent (its expenses), and the difference between the two (its profit/loss), over a specified time. The income statement is the "sexy" portion of the financial statements because it includes figures such as revenue, net income, and earnings per share (EPS). The income statement is the most popular financial statement in an annual or quarterly report. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |