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WHAT YOU CAN WITH INCOME STATEMENTOnce you develop income statement management skills, you can build a value in many directions.These are some of them:→ Make the income statement forecast→ Make segmented income statement > Follow the performance of each business unit or other segment separately.→ Calculate KPIs and ratio numbers > Compare with industry benchmark and peers→ Perform horizontal analysis of income statement→ Perform vertical analysis of income statement→ Create income statement layout that fits to the specific business functions depending on industry> real estate, manufacturing, services etc.. → Use income statement as basis for projection of other statements such as balance sheet and cash flow statementWhat else we can do with income statement?__________________________📌 All of these are part of my Corporate Finance Modeling Pack. Check other features and models here: 👉 https://lnkd.in/dZwwg6Wj
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Brian Feroldi
I demystify the stock market | Author, Speaker, Creator | 100,000+ investors read my free newsletter (see link)
4mo
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You forgot share with investors :)
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Anthony J. Colombo
Controller
4mo
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Excellent informative visual...please make a pdf available for down load...
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beyonce Hsieh
Manager at Taiwan Taipei
1mo
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Excellent informative visual...please make a pdf available for down load
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Orazio Decillis, MBA, FMVA, TEP
I help service professionals & financial experts build, market, sell & scale -> High ticket Advisory Services to $5K/mo and beyond through 1:1 mentorship
4mo
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Income statements are such a powerful tool in finance! From forecasting to analysing performance, they pave the way for better decision-making. Great sharing Bojan Radojicic.
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william becerra
Economista, CRA, Maestria en Finanzas, Gerente General en Cooperativa BCRP
4mo
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Thanks a lot,
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Afeez Adebimpe, ACA
Audit | Finance | Law Aficionado | Tax | Consulting
4mo
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Thanks for sharing
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Woan San Tan, FCCA, ISCA
Finance Manager at HOYA Electronics Singapore Pte. Ltd. (2 Direct Reports, 5 Indirect Reports)
4mo
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I'll keep this in mind. Thank you for sharing.
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HUZAIFA AHMED
📈 Financial Reporting & Analytics Expert | 💡Providing Business Insights through Data Analytics |🚀 Creating Value for Businesses Through Improved Financial Processes | 🌱 ESG | ♻️ Sustainability Reporting | Ex EY |
4mo
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The possibilities are endless when it comes to leveraging the income statement!
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Olawale Ahmed Alamu
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Mohamed Samir, CMA, DipIFR, CIA(Prt1✅️)
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🔍💼🔢 10 Key EBITDA Ratios for Comprehensive Financial Analysis 🔢💼🔍When evaluating a company's financial performance, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratios provide valuable insights into profitability, operational efficiency, and cash flow generation. Here are ten essential EBITDA ratios to consider:1️⃣ 📈 EBITDA Margin: Measure the company's profitability by expressing EBITDA as a percentage of total revenue. It indicates the efficiency of converting revenue into operating profits.2️⃣ 💰 EBITDA-to-Sales: Assess the company's ability to convert sales into EBITDA. Divide EBITDA by total sales to understand operational efficiency and cost management.3️⃣ ⚙️ EBITDA-to-Asset: Determine how effectively the company utilizes its assets to generate EBITDA. Divide EBITDA by total assets to assess asset productivity.4️⃣ 💵 EBITDA-to-Operating Income: Compare EBITDA to operating income to evaluate the impact of non-operating items such as interest and taxes on profitability.5️⃣ 🌐 EBITDA Coverage Ratio: Evaluate the company's ability to cover interest expenses using EBITDA. Divide EBITDA by interest expenses to understand debt-servicing capacity.6️⃣ 🚀 EBITDA Growth Rate: Measure the annual growth rate of EBITDA over a specific period. Compare it to revenue growth to assess margin expansion or contraction.7️⃣ 🏦 EBITDA-to-Interest Expense: Determine the company's ability to cover interest expenses with EBITDA. Divide EBITDA by interest expenses to gauge financial health.8️⃣ 🌍 EBITDA-to-Capital Expenditure: Evaluate the company's ability to generate sufficient cash flow for capital expenditures. Divide EBITDA by capital expenditure to assess self-sustainability.9️⃣ 📊 EBITDA-to-Equity: Measure the return on equity using EBITDA. Divide EBITDA by shareholders' equity to understand profitability relative to the equity invested.🔟 ⏳ EBITDA-to-Working Capital: Assess the company's liquidity and short-term financial health. Divide EBITDA by working capital to evaluate the ability to cover short-term obligations.These EBITDA ratios provide a comprehensive view of a company's financial performance and help inform strategic decision-making. It's crucial to analyze these ratios alongside other financial metrics and industry benchmarks for a holistic understanding.#Finance #EBITDA #FinancialAnalysis #PerformanceMetrics
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Mohamed Samir, CMA, DipIFR, CIA(Prt1✅️)
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🔍💼🔢 10 Key EBITDA Ratios for Comprehensive Financial Analysis 🔢💼🔍When evaluating a company's financial performance, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratios provide valuable insights into profitability, operational efficiency, and cash flow generation. Here are ten essential EBITDA ratios to consider:1️⃣ 📈 EBITDA Margin: Measure the company's profitability by expressing EBITDA as a percentage of total revenue. It indicates the efficiency of converting revenue into operating profits.2️⃣ 💰 EBITDA-to-Sales: Assess the company's ability to convert sales into EBITDA. Divide EBITDA by total sales to understand operational efficiency and cost management.3️⃣ ⚙️ EBITDA-to-Asset: Determine how effectively the company utilizes its assets to generate EBITDA. Divide EBITDA by total assets to assess asset productivity.4️⃣ 💵 EBITDA-to-Operating Income: Compare EBITDA to operating income to evaluate the impact of non-operating items such as interest and taxes on profitability.5️⃣ 🌐 EBITDA Coverage Ratio: Evaluate the company's ability to cover interest expenses using EBITDA. Divide EBITDA by interest expenses to understand debt-servicing capacity.6️⃣ 🚀 EBITDA Growth Rate: Measure the annual growth rate of EBITDA over a specific period. Compare it to revenue growth to assess margin expansion or contraction.7️⃣ 🏦 EBITDA-to-Interest Expense: Determine the company's ability to cover interest expenses with EBITDA. Divide EBITDA by interest expenses to gauge financial health.8️⃣ 🌍 EBITDA-to-Capital Expenditure: Evaluate the company's ability to generate sufficient cash flow for capital expenditures. Divide EBITDA by capital expenditure to assess self-sustainability.9️⃣ 📊 EBITDA-to-Equity: Measure the return on equity using EBITDA. Divide EBITDA by shareholders' equity to understand profitability relative to the equity invested.🔟 ⏳ EBITDA-to-Working Capital: Assess the company's liquidity and short-term financial health. Divide EBITDA by working capital to evaluate the ability to cover short-term obligations.These EBITDA ratios provide a comprehensive view of a company's financial performance and help inform strategic decision-making. It's crucial to analyze these ratios alongside other financial metrics and industry benchmarks for a holistic understanding.#Finance #EBITDA #FinancialAnalysis #PerformanceMetrics
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Association for Financial Professionals
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If you are building a financial model, there are some key finance and accounting skills you need to have, so you can project how a decision will impact the balance sheets and income statement.Common Valuation/Decision Techniques➡️ Net Present Value➡️ Internal Rate of Return➡️ Return on Investment➡️ Break-Even AnalysisCommon Accounting Practices➡️ Modeling Cash Flows➡️ Accrual-Based FlowsDiscover more skills needed to create a financial model: https://bit.ly/41i5EBY#FinanceLooksLike #finance #financialmodeling
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CA Prashant Soni
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Aima Taj
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Good to revise
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Pieter Slegers
Compounding Quality | Investment newsletter with more than 210,000 subscribers
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How to analyze companiesA huge part of that, is analyzing the 3 financial statements.Here’s how to analyze and interpret the…- Balance Sheet- Income Statement- Cash Flow StatementBalance Sheet:The balance sheet consists of the following elements:- Current assets- Long-term assets- Current liabilities- Long-term liabilities- Shareholders equityThe balance sheet is based on a simple formula:Assets = Liabilities + EquitiesA balance sheet shows you what a company owns and owes.Income Statement:An Income Statement shows you the revenues and expenses of a company.It consists of the following elements:Revenue - COGS= Gross Profit- Operating Expenses= Operating Income- Non-Operating Income / Expenses= Pre-Tax Income- Income Tax= Net IncomeCash Flow Statement:A Cash Flow Statements shows you the cash that enters and leaves a company.The Cash Flow Statements consists of 3 elements:- Cash Flow from Operating Activities- Cash Flow from Investing Activities- Cash Flow from Financing ActivitiesCash Flow from Operating Activities:Net Income+ Non-Cash Changes+/- Changes in Working Capital= Cash Flow from Operating ActivitiesCash Flow from Investing Activities:- Capital Expenditures- Acquisitions+ Proceeds from the Sale of Investments= Cash Flow from Investing ActivitiesCash Flow from Financing Activities:+/- Borrowing/Repaying Debt+/- Issuing/Repurchasing Stocks- Dividends Paid= Cash Flow from Financing Activities__📚 Sign up here if you want to receive my free Financial Analysis course and plenty of other free investment resources: https://lnkd.in/ewnHQ_Sw
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Abid Hussain Malik
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