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Income statement - base lines and ratios
Total Revenue or Total Sales - total dollar payment from delivering or producing goods, rendering services or other activities that constitute the entity's ongoing major or central operations.
Cost of Goods Sold (COGS) - is the expense a company incurred in order to manufacture, create, or sell a product. It includes the purchase price of the raw material and the expenses of turning it into a product. Also referred to as "cost of sales".
Gross Profit = Total Revenue - Cost of Goods Sold
Gross Profit Margin = Gross Profit/Total Revenue
Operating Expense - consists of salaries paid to employees, research and development costs, selling and administrative expenses, depreciation and amortization expenses and other misc. charges that must be subtracted from the company's income.
Operating Income = Gross Profit - Operating Expense,
Operating Income = EBIT - the same things, where EBIT is Earnings Before Interest and Taxes.
Operating Margin = Operating Income/Total Revenue
Net Income from Continuing Operations = Operating Income(EBIT) - Interest Expense - Income Tax Expense
Net Income = Net Income from Continuing Operations +- Discontinued +- Extraordinary +- Accounting Changes
Net Profit Margin = Net Income/Total Revenue
Posted by mazoo at February 28, 2005 7:40 PM