Introduction to the income statement | Stocks and bonds | Finance & Capital Markets | Khan Academy

Поділитися
Вставка
  • Опубліковано 18 сер 2009
  • Courses on Khan Academy are always 100% free. Start practicing-and saving your progress-now: www.khanacademy.org/economics...
    The income statement, revenue, gross profit, operating profit, net income, ROA and ROE. Created by Sal Khan.
    Watch the next lesson:
    www.khanacademy.org/economics...
    Missed the previous lesson? Watch here: www.khanacademy.org/economics...
    Finance and capital markets on Khan Academy: Life is full of people who will try to convince you that something is a good or bad idea by spouting technical jargon. Most of them have no idea what they are talking about. Don't be one of those people or their victims when it comes to stocks. From P/E rations to EV/EBITDA, we've got your back!
    About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
    For free. For everyone. Forever. #YouCanLearnAnything
    Subscribe to Khan Academy’s Finance and Capital Markets channel: / channel
    Subscribe to Khan Academy: ua-cam.com/users/subscription_...

КОМЕНТАРІ • 153

  • @ramyaviswesh
    @ramyaviswesh 9 років тому +15

    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

  • @matthewreid2664
    @matthewreid2664 9 років тому +9

    Thank you for explaining accounting to a marketing person in very simple terms....I've been struggling with my lecturer!

  • @oshua132
    @oshua132 9 років тому +9

    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.

  • @Vhuimo
    @Vhuimo 11 років тому +3

    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

  • @RansonJoe
    @RansonJoe 8 років тому +4

    Your channel is an incredible resource. Thank you!

  • @emmajackson3205
    @emmajackson3205 11 років тому +2

    You have saved my life! i have a huge business studies booklet due and i couldn't finish it without doing this and i did it!!! thankyou xxx

  • @royray3671
    @royray3671 3 роки тому +1

    My accounts teacher is wack and i never understand what he teaches
    But when i come to your channel it makes it so better.
    Thank you.❤

  • @wonderphill5710
    @wonderphill5710 8 років тому +4

    im in grade 7 in 2016 and it helps a lot with my entrepreneurs' day

  • @khanacademy
    @khanacademy  15 років тому +4

    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

  • @mizzprinks
    @mizzprinks 12 років тому +1

    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::)

  • @Teeybabyboo
    @Teeybabyboo 9 років тому +28

    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.

  • @tariqsheikh5569
    @tariqsheikh5569 10 років тому

    Every time when you repeact these things, learn something new. Thanks for explanning in such an easy way.

  • @NP-cx8oc
    @NP-cx8oc 10 років тому +2

    Thank you! It's very clear.

  • @lizyip7951
    @lizyip7951 6 років тому +1

    Thanks so much! I finally understand what is ROA and ROE!

  • @piko9311
    @piko9311 9 років тому +1

    This is very helpful, thank you very much indeed!

  • @TheColoredComrades
    @TheColoredComrades 12 років тому

    i just want to say I find you to be a very inspiring man and look forward to volunteering on your site as a translator.

  • @Dapgirl70
    @Dapgirl70 11 років тому

    Great video! I'm feeling more confident. Thanks you!

  • @0nlyt0me
    @0nlyt0me 7 років тому

    Great way of teaching this. Thanks!

  • @Systematik101
    @Systematik101 11 років тому +1

    This was a really good video tutorial! Thanks Man!

  • @twingirlmk4128
    @twingirlmk4128 4 роки тому +3

    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. ❤️😅

  • @thulethianh
    @thulethianh 6 років тому

    Thanks for your teaching. It's really easy to understand. Wish you all the best

  • @hassanbazzi3545
    @hassanbazzi3545 5 років тому +1

    Thank you so much for your explanation.

  • @gilpuy
    @gilpuy 13 років тому

    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

  • @InstTaxSolutionsLLC
    @InstTaxSolutionsLLC 11 років тому +1

    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.

  • @JediFight
    @JediFight 12 років тому

    Great slow explanation. Thank you. Very nice to have information like this available.

  • @armani8983
    @armani8983 6 років тому

    I thought about khan's academy while watching this video and saw channel name after it, omg it's khan's academy video ! awesome.

  • @diogocorreacoelho4288
    @diogocorreacoelho4288 11 років тому

    Damn fam, straight up you a G! Probably best explanation online! real talk, 100.

  • @123sasakigmailcom
    @123sasakigmailcom 11 років тому

    soo easy to understand... thanks man!!

  • @LigiaChacon1414
    @LigiaChacon1414 9 років тому

    Interesting way to abbord concepts of financial statements. I could say that im known more about this area.

  • @megaelliott
    @megaelliott 15 років тому

    Thanks Sal for these videos.

  • @2525georgia
    @2525georgia 13 років тому

    Why can't my lecturer explain it like this!!!! Thanks, you're the best!

  • @jangzterrizer9405
    @jangzterrizer9405 6 років тому

    My goodness you're a good teacher

  • @gilpuy
    @gilpuy 13 років тому

    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

  • @sandbar3000
    @sandbar3000 2 роки тому

    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!

  • @HussainPhoto87
    @HussainPhoto87 10 років тому +1

    Damn Accounting professor. You're my man!

  • @oneskill_ppt
    @oneskill_ppt 7 років тому +9

    well explained, thanks Khan :)

    • @linuxd
      @linuxd 3 роки тому

      He explains everything! From cells, to atoms, to finance.
      You're the man Khan

  • @rolexshadow
    @rolexshadow 5 років тому

    I have my final tomorrow and now I'm much more confident taking it

  • @ThunderersTriumph
    @ThunderersTriumph 11 років тому

    Nice help, thank you!!!!

  • @hechen9980
    @hechen9980 7 років тому

    very helpful for me in a accounting college

  • @clubchelas4471
    @clubchelas4471 11 років тому

    this is great...thank you.

  • @noisternes
    @noisternes 10 років тому +1

    HI SAL! Thanks.

  • @angeisrael6478
    @angeisrael6478 4 роки тому

    Thank youu so much I understand it better now

  • @travis9260
    @travis9260 10 років тому +1

    Khan :) thank you

  • @Dayao12
    @Dayao12 10 років тому

    I'm passing my quiz tomorrow! Thanks so much for this tutorial!

  • @MrDaddydiva
    @MrDaddydiva 5 років тому

    This could be the most useful video for start up's.

  • @alfiedj
    @alfiedj 14 років тому

    Yea, thx man, helpful stuff!

  • @owldat
    @owldat 11 років тому

    Awesome!!

  • @iambond123
    @iambond123 14 років тому

    HI Sal Your videos are really Usefull.
    Thanks Indeed
    Chirag Ali

  • @19NooNaDa
    @19NooNaDa 11 років тому

    Thank you for the video.

  • @Gilvids
    @Gilvids 4 роки тому

    This is gold!

  • @shashank4277
    @shashank4277 4 роки тому

    Beautiful!!

  • @rawsip5037
    @rawsip5037 6 років тому

    very well explained

  • @vendettahappyno2769
    @vendettahappyno2769 7 років тому

    not what I needed but u r still quite smart .

  • @shirleygaietymoyo8041
    @shirleygaietymoyo8041 8 років тому

    this was very helpful, thanks a lot

    • @AZAZEL_TK
      @AZAZEL_TK 8 років тому +1

      Giiiiiiiiiiiirrrrlll

  • @amandeepaaaaa
    @amandeepaaaaa 11 років тому

    thanks man.. i like your stuff...

  • @nkamal2007
    @nkamal2007 12 років тому

    @khanacademy thankyou very much..apecial thanks to Mr. Salman Khan...

  • @cool70200
    @cool70200 15 років тому

    Thanks for the video.

  • @Geesjuh
    @Geesjuh 12 років тому

    thankyou so much!!

  • @daniellos333
    @daniellos333 9 років тому

    very concise.

  • @xx480o
    @xx480o 9 років тому +1

    Just what u needed!! Thanks a lot :)

    • @AllDailyInspirations
      @AllDailyInspirations 8 років тому

      +Faiza Ismail lol u? or "i"

    • @xx480o
      @xx480o 8 років тому

      +Linda A true I* lol :'D

    • @xx480o
      @xx480o 8 років тому

      +Linda A true I* lol :'D

  • @petertjebooty
    @petertjebooty 3 роки тому

    You're amazing!

  • @namphetzzzz
    @namphetzzzz 11 років тому

    Thank you .

  • @alghafli89
    @alghafli89 9 років тому

    Thank you

  • @ohmitchiebabe
    @ohmitchiebabe 14 років тому

    :) Easy to understand video

  • @anzwertree
    @anzwertree 13 років тому

    Dude, you rock

  • @samreenashraf6426
    @samreenashraf6426 3 роки тому

    helpfull. thank you

  • @atrumluminarium
    @atrumluminarium 11 років тому

    It's that easy! :O

  • @thehoneybadger9389
    @thehoneybadger9389 4 роки тому

    Thank you very much :)

  • @sultanbalobaid2463
    @sultanbalobaid2463 11 років тому

    thanks broo

  • @nervozaur
    @nervozaur 10 років тому +1

    hahaha, nailed it!

  • @nicoa263
    @nicoa263 7 років тому

    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.

  • @uknwtheusername
    @uknwtheusername 11 років тому

    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.)?

  • @SuperJillian
    @SuperJillian 11 років тому

    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

  • @imcurious1009
    @imcurious1009 2 роки тому

    Legend!

  • @zufrieden23
    @zufrieden23 13 років тому

    the best!!!!!!!!!!!

  • @rutujabankhele1889
    @rutujabankhele1889 4 роки тому

    better than my accounts proffessor!!!!!!!!!!!!

  • @AbhaySoorya
    @AbhaySoorya 11 років тому

    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!

  • @delinquent2002
    @delinquent2002 14 років тому

    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?

  • @poshstars
    @poshstars 14 років тому

    you r right .

  • @jcdlrv
    @jcdlrv 14 років тому

    hi, i want to know what is the next video i would see after price and market capitalization.

  • @fionaNESS
    @fionaNESS 12 років тому

    statement of changes in equity!!!

  • @AminaLn
    @AminaLn 7 років тому +8

    Is there anything you can't explain? I wish I had such a broad knowledge of so many different topics.

    • @Redmile2006
      @Redmile2006 7 років тому +11

      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 :)

  • @Amicoskates01
    @Amicoskates01 5 років тому +6

    Imagine owning a business that does 5 mil in sales, but only profits 350k.
    Sheesh

  • @gothicking999
    @gothicking999 14 років тому

    Excellent, just one question though, whats a widgit?

  • @PercyWellington
    @PercyWellington 4 роки тому

    is the interest actual interest or interest + principle? like from a mortgage payment?

  • @devbodaghe
    @devbodaghe 12 років тому

    In real estate operating profit will bet the same thing as net operating income (NOI). Expect that taxes is included included.

  • @loveormoney786
    @loveormoney786 4 роки тому

    Is CapEX included in COGS?

  • @jedThorpe
    @jedThorpe 6 років тому

    Is Operating profit same as EBITDA?

  • @meanmanturbo
    @meanmanturbo 13 років тому

    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.

  • @lucuslucuses5595
    @lucuslucuses5595 4 роки тому

    Are wages a part of SG&A?

  • @yasu_tv
    @yasu_tv 12 років тому

    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/

  • @mehwhyausername1
    @mehwhyausername1 3 роки тому +1

    ROA really isn't generally based on operating profit. almost everyone uses net income as a general rule.

  • @ruthlessluder
    @ruthlessluder 7 років тому

    Is the ROA = net income / asset? In your example it's operating profit / asset.

  • @KarenSanderson1
    @KarenSanderson1 11 років тому

    Revenues minus cost of doing business is income.

  • @kingtigercrownestate9102
    @kingtigercrownestate9102 Рік тому

    Assuming that payroll for ALL employees is included and not just sales people right?

  • @KLFacebook
    @KLFacebook 11 років тому

    better than our doctor

  • @blahlul95
    @blahlul95 7 років тому +1

    Why is return on assets based off the operating profit and not the net income?

    • @desse56
      @desse56 7 років тому

      Great question, was thinking about the same

  • @twentysixstrings
    @twentysixstrings 4 роки тому

    Where is assets depreciation in costs of Income statement ?

  • @jennybon999
    @jennybon999 11 років тому

    khanacademy you're fucking amazing

  • @guesswhoami4723
    @guesswhoami4723 6 років тому +6

    Face reveal?