Income Statement (P&L) Calculation Quiz

Gross profit margin = Gross Profit / Revenue Operating profit margin = Operating Profit / Revenue Net profit margin = Net Income / Revenue Interest coverage ratio = EBIT / Interest Expense

Accounts Payable (Trade Payables) = Current Liabilities Plant Property & Equipment = Fixed Assets Goodwill = Intangible Assets Common Stock = Shareholders Equity

EBIT = Earnings before Interest and Taxes SG&A = Selling, General & Administrative expenses Cogs = Cost of Goods Sold Amortization = Systematic write-off of the cost of an intangible asset over its useful life

<p>Revenue (Sales) = Total amount of income generated by sales of goods or services Other Income/Expenses = Non-operating gains or losses outside of the regular business activities Total Current Assets = Sum of all short-term assets that are expected to be converted into cash within one year Net Fixed Assets = Value of fixed assets after accounting for accumulated depreciation</p> Signup and view all the answers

<p>Depreciation = Operating Expense Interest expense = Subtracted from EBIT to calculate Profit Before Taxes Income Taxes = Deducted from Profit Before Taxes to calculate Net Income Other = Miscellaneous operating expenses not categorized under SG&amp;A or Depreciation</p> Signup and view all the answers

<p>Operating profit margin = Efficiency of operations in generating profit before interest and taxes Net profit margin = Overall profitability after accounting for all expenses and taxes Interest coverage ratio = Ability to meet interest obligations with operating income Gross profit margin = Profitability from core business activities before operating expenses</p> Signup and view all the answers