Report
Share
Recommended
Recommended
Income statement definition
An income statement is a financial statement that reports a company's financial performance over a specific accounting period. It is one of the three important financial statements used for reporting a company’s financial performance, the other two being the balance sheet and the cash flow statement. The income statement focuses on the revenue, and expenses reported by a company during a particular period. It provides valuable insights into a company’s operations, the efficiency of its management, underperforming sectors, and its performance relative to industry peers.
The income statement is also known as the profit and loss (P&L) statement or the statement of revenue and expense. It starts with the details of sales and then works down to compute net income and eventually earnings per share (EPS). The income statement does not differentiate between cash and non-cash receipts (sales in cash vs. sales on credit) or cash vs. non-cash payments/disbursements (purchases in cash vs. purchases on credit).
Key income statement items
Revenue is the total amount of money a company earns from its operations, usually from the sale of goods or services. For example, a car manufacturer’s revenue would be the total amount of money it earns from selling cars.
Cost of Goods Sold (COGS) represents the direct costs associated with producing or delivering the goods or services sold by a company. In the auto industry, COGS would include the cost of raw materials, labor, and other expenses directly related to manufacturing vehicles.
Gross Profit is calculated by subtracting the COGS from the revenue.
Selling, General, and Administrative (SG&A) expenses represents the costs associated with a company's non-production activities, such as sales, marketing, and administrative functions. In the auto industry, SG&A expenses would include salaries of sales personnel, advertising expenses, rent for office spaces, and other costs related to running the business.
Depreciation & Amortization: Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful life. Amortization, on the other hand, is the process of spreading out the cost of an intangible asset over its useful life. In the auto industry, depreciation and amortization expenses would include the depreciation of manufacturing equipment, vehicles, and amortization of patents or trademarks.
Interest Expenses represents the costs associated with borrowing money or using credit facilities. Interest expenses are incurred when a company has outstanding debt or loans. In the auto industry, interest expenses would include interest paid on loans used to finance manufacturing facilities or purchase equipment.
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.comCreating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...Aurelien Domont, MBA
More Related Content
Recently uploaded
Income statement definition
An income statement is a financial statement that reports a company's financial performance over a specific accounting period. It is one of the three important financial statements used for reporting a company’s financial performance, the other two being the balance sheet and the cash flow statement. The income statement focuses on the revenue, and expenses reported by a company during a particular period. It provides valuable insights into a company’s operations, the efficiency of its management, underperforming sectors, and its performance relative to industry peers.
The income statement is also known as the profit and loss (P&L) statement or the statement of revenue and expense. It starts with the details of sales and then works down to compute net income and eventually earnings per share (EPS). The income statement does not differentiate between cash and non-cash receipts (sales in cash vs. sales on credit) or cash vs. non-cash payments/disbursements (purchases in cash vs. purchases on credit).
Key income statement items
Revenue is the total amount of money a company earns from its operations, usually from the sale of goods or services. For example, a car manufacturer’s revenue would be the total amount of money it earns from selling cars.
Cost of Goods Sold (COGS) represents the direct costs associated with producing or delivering the goods or services sold by a company. In the auto industry, COGS would include the cost of raw materials, labor, and other expenses directly related to manufacturing vehicles.
Gross Profit is calculated by subtracting the COGS from the revenue.
Selling, General, and Administrative (SG&A) expenses represents the costs associated with a company's non-production activities, such as sales, marketing, and administrative functions. In the auto industry, SG&A expenses would include salaries of sales personnel, advertising expenses, rent for office spaces, and other costs related to running the business.
Depreciation & Amortization: Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful life. Amortization, on the other hand, is the process of spreading out the cost of an intangible asset over its useful life. In the auto industry, depreciation and amortization expenses would include the depreciation of manufacturing equipment, vehicles, and amortization of patents or trademarks.
Interest Expenses represents the costs associated with borrowing money or using credit facilities. Interest expenses are incurred when a company has outstanding debt or loans. In the auto industry, interest expenses would include interest paid on loans used to finance manufacturing facilities or purchase equipment.
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.comCreating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...Aurelien Domont, MBA
Recently uploaded (20)
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
Creating an Income Statement with Forecasts: A Simple Guide and Free Excel Te...
First Time Home Buyer's Guide - KM Realty Group LLC
First Time Home Buyer's Guide - KM Realty Group LLC
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
Toyota Kata Coaching for Agile Teams & Transformations
Toyota Kata Coaching for Agile Teams & Transformations
Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.
Abortion pills in Muscut<Oman(+27737758557) Cytotec available.inn Kuwait City.
South Africa's 10 Most Influential CIOs to Watch.pdf
South Africa's 10 Most Influential CIOs to Watch.pdf
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
Featured
More than Just Lines on a Map: Best Practices for U.S Bike Routes
This session highlights best practices and lessons learned for U.S. Bike Route System designation, as well as how and why these routes should be integrated into bicycle planning at the local and regional level.
Presenters:
Presenter: Kevin Luecke Toole Design Group
Co-Presenter: Virginia Sullivan Adventure Cycling AssociationMore than Just Lines on a Map: Best Practices for U.S Bike Routes
More than Just Lines on a Map: Best Practices for U.S Bike RoutesProject for Public Spaces & National Center for Biking and Walking
Featured (20)
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
The six step guide to practical project management
The six step guide to practical project management
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
More than Just Lines on a Map: Best Practices for U.S Bike Routes
More than Just Lines on a Map: Best Practices for U.S Bike Routes
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Shot number
- 1. Shot number location Shot type 1 15 lyonette road Close up of knife 2 15 lyonette road Close up of blood 3 15 lyonette road Close up gun 4 15 lyonette road Close up of dead body 5 QE sixth form Close up door knob 6 QE sixth form Close up key pad 7 QE sixth form Long shot of actor walking through door 8 QE sixth form Medium shot of filing cabinet opening 9 QE sixth form Panning shot of money 10 QE sixth form Medium mug shot 11 QE sixth form Medium mug shot 12 QE sixth form Close panning shot of newspaper 13 QE sixth form Close panning shot of newspaper 14 QE sixth form Close panning shot of newspaper 15 QE sixth form Close panning shot of newspaper 17 QE sixth form Close up of actor 16 Darlington town Panning long shot Barclays bank