Gross profit - operating expenses = EBITDA
There are some additional expenses that should business email list be recorded on the product income statement: interest and taxes.
Interest is sometimes allocated to a product or product line to cover borrowing costs for the company to use for its operations. Taxes are levied by the state and various levels of government based on corporate profits. All of these items are beyond the control of the product and the product team. However, in most cases, the gross profit or even EBITDA of the product may "disappear" due to other apportionments or expenses such as interest, taxes, depreciation and amortization.
EBITDA - (interest, tax, depreciation, amortization) = net income
Net Income / Gross Income = Net Yield
Net income (or net profit) is the fundamental reason why a company does business. Why take the risk of running a company if the final net yield is lower than the deposit rate?
2. Balance Sheet
A balance sheet is a financial statement that provides a "snapshot" of a company's assets and liabilities at a particular time, as well as showing the company's overall net assets and equity at that particular time. It is different from the income statement, which shows a company's financial cycle.
A balance sheet describes the assets owned by a company, which may be funds provided by creditors or capital by shareholders or business owners (or both). The balance sheet indicates that the state of the entire company is in balance. Just like the human body, the balance sheet must be in a state of equilibrium, or homeostasis, for a business to function properly. A balance sheet has a basic arithmetic formula or equation as shown below.