Examples of major lines in the financial statements
IS: Revenue, COGS, Operating Income, Pre Tax Income, Net IncomeCFS: Net income, Depreciation & Amortization, Stock Based Compensation, Cash Flow from Financing, Cash Flow from Investing, Cash flow from OperationsBS: Assets- Cash, Inventory, Account Receivable, PPE, Liabilities- Accounts Payable, Debt, Accrued Expenses, Shareholders Equity
There are several major lines in the financial statements of a company that provide important information about its financial performance and position. Some of the major lines in the financial statements are:
1. Revenue: Revenue is the total amount of money a company earns from its core operations. It is one of the most important lines in the income statement as it reflects the company’s ability to generate sales.
2. Cost of Goods Sold: This represents the direct costs incurred by a company to produce or acquire goods that are sold to customers. Cost of goods sold is subtracted from revenue to calculate gross profit.
3. Gross profit: Gross profit is the difference between revenue and cost of goods sold. It represents the profit a company makes before deducting indirect expenses such as salaries, rent, and utilities.
4. Operating expenses: Operating expenses are the indirect expenses incurred by a company to operate its business. They include salaries, rent, utilities, advertising, and other expenses related to running the business.
5. EBITDA: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company’s profitability that shows how much cash flow it generates from operations.
6. Net income: Net income is the bottom line of the income statement. It represents the profit or loss after deducting all expenses, including taxes and interest.
7. Total assets: Total assets represent the value of all the resources a company owns. This includes cash and cash equivalents, accounts receivable, inventory, property, plant, and equipment.
8. Total liabilities: Total liabilities represent the amount of debt a company owes to creditors.
9. Shareholders’ equity: Shareholders’ equity represents the amount of money that belongs to the company’s shareholders after deducting liabilities from assets. It includes retained earnings and capital contributed by shareholders.
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