Download as pdf or txt
Download as pdf or txt
You are on page 1of 2

Stock Investing for Individuals

Income
Statement

Revenue Side
o Revenue from operations
o Other revenue
o Break-up of revenue from notes to accounts

Expense Side
o Cost of Goods Sold
o Employees benefit expense
o Finance costs
o Depreciation and Amortisation Expense
o Other Expense
o Break-up of line items from notes to accounts

Profit/Loss
o Profit/Loss before taxes
o Other comprehensive income
o Taxes
o Profit
o EPS (Earnings Per Share)
o Loss after taxes

171
Stock Investing for Individuals

In the end, we
can see a Net
SURŢWDIWHUWD[
is 604 crores.
7SYVGI+SHE[EVM4S[IV -WTEX0XH%RRYEP6ITSVX*=

6IZIRYIJVSQSTIVEXMSRWSVSTIVEXMRKVIZIRYIGERFIHIƼRIHEW
Revenue the income generated by an entity from its daily core business
operations.
Side
6IZIRYIKIRIVEXIHF]STIVEXMSRW[MPPMRGPYHIXLIWEPISJZEVMSYW
items and services. Other revenue sources will include items like
interest received on investments, gains from asset sales, and so
on.

The expense side includes the cost of raw materials, employee


Expense I\TIRWIWMRXIVIWXVEXIWHITVIGMEXMSRERHWSSR;IGERƼRHXLI
breakdown of each line item moving forward, so we are aware of
Side the structure of an income statement and its elements.

8LI RIX HMJJIVIRGI FIX[IIR VIZIRYI ERH I\TIRWIW MW TVSƼX


Profit/Loss loss before taxes. There is an accounting term called other
comprehensive income, which we can let go off as retail investors.
;I[MPPWYFXVEGXXE\IWJVSQXLITVSƼXPSWWXSKIXTVSƼXEJXIVXE\
Finally, we have EPS, which is earning per share, which we have
discussed earlier.
0IXƅWMQEKMRIEGSVTSVEXMSRQEHIGVSVIWMRTVSƼXWERHLEWƼZI
crore shares in the market; how much did we make each share:

EPS = 200 Cr. / = Rs. 40 Cr.


5 Cr.
172

You might also like