Elements of the income statement

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Mitu6670
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Joined: Sun Dec 22, 2024 8:12 am

Elements of the income statement

Post by Mitu6670 »

As you can see, the income statement is structured around 5 major accounting concepts:

1. Operating results.
It is the result generated by the normal activity of the business, income less normal operating expenses, which include depreciation.

2. The operating result or EBITDA.
It is the operating result before depreciation is subtracted.

Financial taiwan mobile number operations
Exceptional operations
Taxes on profits
Net result
[Anfix_bonus] * EBITDA : Earnings before interest, taxes, depreciations and amortizations . Earnings before interest, taxes, provisions and amortizations. [/Anfix_bonus]

3. The financial result
It is, as its name indicates, the result of financial income and expenses.

Expenses could be the interest that the company has to pay on credits, loans or discounts.

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The income would be the interest in favor of the company

4. The extraordinary result.
We would be talking about expenses and income that do not have a direct relationship with the company's usual activity.

5. The net result.
If the pre-tax result is positive, the net result is what you get when you have deducted the profit tax.

8 keys to analyzing the income statement
1. The income statement tells you whether you are making or losing money. But from an economic point of view, that is, as the difference between income and expenses. This does not mean that from a financial point of view, you have sufficient liquidity or treasury, because sometimes income or expenses have collection and payment deadlines that are later than the preparation of the income statement.
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