Equities & Valuation · Valuation
Reading an Income Statement
Revenue down to net income line by line: gross profit, operating expenses, EBIT, EBITDA, interest, taxes and EPS; margins and what they reveal; GAAP vs adjusted numbers; and a five-minute routine for any 10-K.
Step 1 of 6 · Overview35 min read ·
Key idea
Prereqs: Fractions & percentages; Three statements (Finance Modeling) helps. Next: Balance sheet & cash flow statement. Follows NYU Stern (Damodaran) accounting primers, CFA Level I FRA and Brian Feroldi's statement guides.Next: 1. The waterfall