The Income Statement
The scoreboard of profit: revenue at the top, what is left for you at the bottom.
Lessons
- The Income Statement, Top to BottomA guided walk from revenue down to net profit, with every line in plain English.
- Revenue: When a Sale CountsRevenue is trickier than it looks — when a company is allowed to book it changes the numbers.
- Cost of Goods Sold & Gross ProfitWhat it costs to make the thing, and the first profit line that reveals pricing power.
- Operating Expenses & Operating ProfitThe cost of running the business day to day, and the profit from its core operations.
- EBITDA: Useful and AbusedA popular profit shortcut that hides real costs. When to trust it and when it lies.
- Net Profit & Earnings Per ShareThe bottom line, and the version of it that belongs to a single share you own.