Скачать или смотреть How to Read an Income Statement | Interpreting the Income Statement

Free Google Sheet Resource http://bit.ly/3oYmi4Q

Hello Wealth Giants!

In this video I go through a step-by-step break down of the income statement. I talk about the vocabulary used, the definitions, and a live example of an income statement. It can be a bit of a challenge to understand what it is you are reading, but once you watch this video you will be able to get through the income statement like it was nothing. Here is a list of all the vocabulary you need to know. Also check out the link above for that free income statement cheat sheet.

Things to look for on the income statement include:

-Total Revenue (net revenue or net sales) - All Money made in a period of time (Q or TTM).
-Cost of Revenue (COGS or cost of services) - The cost to make and give a product or service.
-Gross Profit (Gross Income) - Remaining income for other company expenses. It is equal to the Total Revenue - Cost of Revenue
-Operating Expense - Cost of running a business.
-Selling, General and Administrative (SG&A) - It includes expenses such as wages, accounting, building, etc.
-Research & Development (R&D) - Research of new products.
-Operating Income / Loss - Income before interest expenses and income tax expenses. It is equal to Gross Profit - Operating Expenses.
-Net Non Operating Interest Income Expense Interest the company has to pay on invested funds (loans, mortgage, etc).
-Other Income Expense - Expenses Not directly related to business core operations.
-Pretax Income - Operating Income OR Loss + Net Non Operating Interest Income Expense + Total Other Expenses.
-Tax Provision - Taxes paid.
-Net Income Common Stockholders (or net profit or net earnings) - Total amount remaining after expenses (move this to cash flow statement)

Hope that helps Wealth Giants and until next time.

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Enjoy,

Wealth Giants with Ryan

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