Introduction to the income statement | Stocks and bonds | Finance & Capital Markets | Khan Academy
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- Опубліковано 18 сер 2009
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The income statement, revenue, gross profit, operating profit, net income, ROA and ROE. Created by Sal Khan.
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Thank you! so much for all your teachings.I am able to learn financial statements better! than any regular class teachings. Thank you soo much, God bless u and u r family
Thank you for explaining accounting to a marketing person in very simple terms....I've been struggling with my lecturer!
Thank you Mr. Khan, these videos are going to allow people to understand this information and get in a game that they have been on the tail end of. Thank you, thank you, thank you. Many blessings to you and your family.
awesome dude!!!, writing my exam tomorrow and they better not bring up the income statement because imma bowl it out like a boss after this video!!!#fFromSouthAfrica
Your channel is an incredible resource. Thank you!
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My accounts teacher is wack and i never understand what he teaches
But when i come to your channel it makes it so better.
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im in grade 7 in 2016 and it helps a lot with my entrepreneurs' day
That is one of the definitions. The standard formula takes out the effect of interest and tax savings from interest and is (net income + interest - tax savings from interest)/Assets which is essentially saying how much earnings would I have if I weren't paying debt. If you wanted a pre-tax ROA than you could just add back interest and taxes and divide by Assets (or EBIT/Assets which is, for the purposes of this examples, the same as Op profit/Assets
I am a medical student and recently an MBA student to learn about finance. This is the first time I actually wanna learn finance after starting the course, because it was simply so boring to a medical student like me and made absolutely no sense. Now it does, THANKYOU! GOnna watch the rest of your economics videos::)
That you so much for this video. I am currently registered in a finance class, and This is just what i needed to brush up on my accounting. very well explained, and easy to understand.
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Teeybabyboo exact same for me
hey
Every time when you repeact these things, learn something new. Thanks for explanning in such an easy way.
Thank you! It's very clear.
Thanks so much! I finally understand what is ROA and ROE!
This is very helpful, thank you very much indeed!
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Great video! I'm feeling more confident. Thanks you!
Great way of teaching this. Thanks!
This was a really good video tutorial! Thanks Man!
Thanks so much for your amazing explanation for us. I can learn income statement better than before. In the class I really difficult to caught up a lesson with professor and I also can not understanding some point, but now I can understand 50% of it and I also learn to do some exercise too. ❤️😅
Thanks for your teaching. It's really easy to understand. Wish you all the best
Thank you so much for your explanation.
yesss...very outstanding explanation...helping to understand all of those subject that makes me suck,but now i start to like it...you are amazing mr khan, i hope my real lecturer in campus is you sir...salute from indonesia
Excellent presentation about an income statement, which may also be known as a profit and loss statement. This is one of the most basic accounting documents, but it is also one of the most used financial reports.
Great slow explanation. Thank you. Very nice to have information like this available.
I thought about khan's academy while watching this video and saw channel name after it, omg it's khan's academy video ! awesome.
Damn fam, straight up you a G! Probably best explanation online! real talk, 100.
soo easy to understand... thanks man!!
Interesting way to abbord concepts of financial statements. I could say that im known more about this area.
Thanks Sal for these videos.
Why can't my lecturer explain it like this!!!! Thanks, you're the best!
My goodness you're a good teacher
yesss...very outstanding explanation...helping to understand all of those subject that makes me suck,but now i start to like it...you are amazing mr khan, i hope my real lecturer in campusis you sir...salute from indonesia
I loved your video on the usefulness of the balance sheet. I love roi roa...
And how liquid is the company.
I have an MBA in 2011. But my depression has kept me low and it's very hard to sell my skills in job interviews. I have watched 25 videos of yours in this series so far. If it was not for my depression...I'd teach accounting!
Damn Accounting professor. You're my man!
well explained, thanks Khan :)
He explains everything! From cells, to atoms, to finance.
You're the man Khan
I have my final tomorrow and now I'm much more confident taking it
Nice help, thank you!!!!
very helpful for me in a accounting college
this is great...thank you.
HI SAL! Thanks.
Thank youu so much I understand it better now
Khan :) thank you
I'm passing my quiz tomorrow! Thanks so much for this tutorial!
Did u pass??? Lol
This could be the most useful video for start up's.
Yea, thx man, helpful stuff!
Awesome!!
HI Sal Your videos are really Usefull.
Thanks Indeed
Chirag Ali
Thank you for the video.
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very well explained
not what I needed but u r still quite smart .
this was very helpful, thanks a lot
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@khanacademy thankyou very much..apecial thanks to Mr. Salman Khan...
Thanks for the video.
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very concise.
Just what u needed!! Thanks a lot :)
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You're amazing!
Thank you .
Thank you
:) Easy to understand video
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helpfull. thank you
It's that easy! :O
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Not trying to dis. This guy is amazing and I learn from him everyday. But just to put my .2 out there. ROA is Net income divided by Total Assets. Just for all the people to know, one must account for Continuing Operations and Non-Recurring events to get the total net income. The example above, though perfect for covering the basics, is assuming that the operating profit is the net income to get the ROA.
Question: where would you find the figure for the company's total assets inside their financial statements (i.e. income state., balance sheet, cash flow statement, etc.)?
Great videos, thank you. Question: You explained ROA = 1M/10M=10% in which $1M came from Operating Profit. I thought it should be Net Income, which is $350,000. Please explain since I am confused! Thanks
Legend!
the best!!!!!!!!!!!
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Hey Sal - Thanks for making these videos..Quick question - you said that ROA = Operating profit/Total asset value....I thought it was Net Income/Total Asset Value? PLEASE confirm this..Thanks!
You are really helping me to understand the things i did not understand befor...lol. I have a question and maybe you can help me with this.. I buy Merch.. from a wholesaler out of California. When I recieve my merch... and the invoice from the wholesaler there is a Freight charge. When i do my Quarterly Taxes, do i include the freight charges? Or is it a deduction?
you r right .
hi, i want to know what is the next video i would see after price and market capitalization.
statement of changes in equity!!!
Is there anything you can't explain? I wish I had such a broad knowledge of so many different topics.
travel bug That's what happens when we spend our free time reading books and watching educational videos instead of playing video games and watching Netflix :)
Imagine owning a business that does 5 mil in sales, but only profits 350k.
Sheesh
Excellent, just one question though, whats a widgit?
is the interest actual interest or interest + principle? like from a mortgage payment?
In real estate operating profit will bet the same thing as net operating income (NOI). Expect that taxes is included included.
Is CapEX included in COGS?
Is Operating profit same as EBITDA?
Maybe a little to much detail, or maybe it is just a difference between US and Sweden (since we have all these nice taxes here...), but when I did this at university you would always try to max out write downs on assets to minimize pre tax income to minimize the taxes you pay. Of course, this is bad for share holders, since it would make the company look worse of then it really is.
Are wages a part of SG&A?
Income Statement/Balance Sheet/Cash Flow Statement/G&A/SG&A/Cost of Goods Sold/Marketing/Sales/Gross Profit/Operating Profit/Enterprise Value/Return on Asset/ROA/Pre-tax Income/Net Income/Depreciation/Amortization/Return on Equity/ROE/Variable Cost/Fixed Cost/Sales People/Auditor/plain vanilla/jumble up/nuance/detract/
ROA really isn't generally based on operating profit. almost everyone uses net income as a general rule.
Is the ROA = net income / asset? In your example it's operating profit / asset.
Revenues minus cost of doing business is income.
Assuming that payroll for ALL employees is included and not just sales people right?
better than our doctor
Why is return on assets based off the operating profit and not the net income?
Great question, was thinking about the same
Where is assets depreciation in costs of Income statement ?
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