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Income Statement Analysis
Income Statement Analysis
A type of financial analysis that involves analyzing a company's revenue and expenses to
determine its profitability. The following are some of the commonly used formulas for
5. Earnings before interest and taxes (EBIT): Revenue - Cost of goods sold -
Operating expenses
7. Net income: Revenue - Cost of goods sold - Operating expenses - Interest expenses -
Tax expenses
10. Price-to-earnings ratio (P/E): Market price per share / Earnings per share
Note that these formulas are not exhaustive and there may be other formulas used for income
statement analysis depending on the context and the specific financial indicators being
analyzed.