Technicals Stability Returns



Understanding Income Statement



An Income Statement is a component of the financial statement that indicates the company's revenue and expenses as well as whether the company is making profit or loss for a given period. Income Statement also popularly known as a Profit & Loss Statement, Statement of operation, statement of financial income or results, etc.


Key Income Statement Fields

Operating Profit
Operating Profit

Operating profit is the income that comes from core business operations excluding interest and taxes.


EBITDA
EBITDA

EBITDA or earnings before interest, taxes, depreciation, and amortization is used to represent cash profit generated by the company's operations. EBITDA is calculated by stripping out non-cash expenses such as depreciation and amortization, and taxes


Net Income
NET Income

Net income refers to the amount that a company makes after deducting all expenses and taxes. It can be distributed to shareholders or reinvested back into the business, or save for the future.


PBT
PBT

Profit that a company makes prior to applying income tax is known as profit before tax or PBT. Pre-tax profit and earnings before tax, sometimes known as EBT, are further terms for a profit before tax


PAT
PAT

Profit After Tax represents a company's earnings after all expenses are deducted. This is the amount of residual profit that an company has at the end of its operations.


EBIT
EBIT

EBIT (earnings before interest and tax expenses ) is the profitability measurement that determines the company's profit before deducting interest expenses and tax expenses.


CFO to Debt Ratio
CFO to Debt Ratio

Cash Flow from Operation (CFO) to Debt Ratio indicates how much time it will take for the company to meet its debt obligations by its cash flow from operations, or we can say that it is a measure of the operating cash generated by the company relative to its debts






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