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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КОМЕНТАРІ • 153

  • @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

  • @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

  • @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

  • @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!

  • @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

  • @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.

  • @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.❤

  • @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::)

  • @RansonJoe
    @RansonJoe 8 років тому +4

    Your channel is an incredible resource. Thank you!

  • @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.

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

    Thank you! It's very clear.

  • @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

  • @tariqsheikh5569
    @tariqsheikh5569 10 років тому

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

  • @lizyip7951
    @lizyip7951 6 років тому +1

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

  • @Dapgirl70
    @Dapgirl70 11 років тому

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

  • @piko9311
    @piko9311 9 років тому +1

    This is very helpful, thank you very much indeed!

  • @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!

  • @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.

  • @hassanbazzi3545
    @hassanbazzi3545 5 років тому +1

    Thank you so much for your explanation.

  • @wonderphill5710
    @wonderphill5710 8 років тому +4

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

  • @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.

  • @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/

  • @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

  • @megaelliott
    @megaelliott 15 років тому

    Thanks Sal for these videos.

  • @123sasakigmailcom
    @123sasakigmailcom 11 років тому

    soo easy to understand... thanks man!!

  • @JediFight
    @JediFight 12 років тому

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

  • @rutujabankhele1889
    @rutujabankhele1889 4 роки тому

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

  • @HussainPhoto87
    @HussainPhoto87 10 років тому +1

    Damn Accounting professor. You're my man!

  • @ThunderersTriumph
    @ThunderersTriumph 11 років тому

    Nice help, thank you!!!!

  • @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

  • @diogocorreacoelho4288
    @diogocorreacoelho4288 11 років тому

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

  • @clubchelas4471
    @clubchelas4471 11 років тому

    this is great...thank you.

  • @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!

  • @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.

  • @jangzterrizer9405
    @jangzterrizer9405 6 років тому

    My goodness you're a good teacher

  • @travis9260
    @travis9260 10 років тому +1

    Khan :) thank you

  • @LigiaChacon1414
    @LigiaChacon1414 9 років тому

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

  • @2525georgia
    @2525georgia 13 років тому

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

  • @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

  • @owldat
    @owldat 11 років тому

    Awesome!!

  • @rolexshadow
    @rolexshadow 5 років тому

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

  • @19NooNaDa
    @19NooNaDa 11 років тому

    Thank you for the video.

  • @hechen9980
    @hechen9980 7 років тому

    very helpful for me in a accounting college

  • @shashank4277
    @shashank4277 4 роки тому

    Beautiful!!

  • @alfiedj
    @alfiedj 14 років тому

    Yea, thx man, helpful stuff!

  • @angeisrael6478
    @angeisrael6478 4 роки тому

    Thank youu so much I understand it better now

  • @rawsip5037
    @rawsip5037 6 років тому

    very well explained

  • @namphetzzzz
    @namphetzzzz 11 років тому

    Thank you .

  • @alghafli89
    @alghafli89 9 років тому

    Thank you

  • @cool70200
    @cool70200 15 років тому

    Thanks for the video.

  • @Gilvids
    @Gilvids 4 роки тому

    This is gold!

  • @daniellos333
    @daniellos333 9 років тому

    very concise.

  • @Geesjuh
    @Geesjuh 12 років тому

    thankyou so much!!

  • @MrDaddydiva
    @MrDaddydiva 5 років тому

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

  • @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...

  • @petertjebooty
    @petertjebooty 3 роки тому

    You're amazing!

  • @samreenashraf6426
    @samreenashraf6426 3 роки тому

    helpfull. thank you

  • @iambond123
    @iambond123 14 років тому

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

  • @Dayao12
    @Dayao12 10 років тому

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

  • @thehoneybadger9389
    @thehoneybadger9389 4 роки тому

    Thank you very much :)

  • @vendettahappyno2769
    @vendettahappyno2769 7 років тому

    not what I needed but u r still quite smart .

  • @noisternes
    @noisternes 10 років тому +1

    HI SAL! Thanks.

  • @imcurious1009
    @imcurious1009 2 роки тому

    Legend!

  • @ohmitchiebabe
    @ohmitchiebabe 14 років тому

    :) Easy to understand video

  • @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.

  • @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.

  • @shirleygaietymoyo8041
    @shirleygaietymoyo8041 8 років тому

    this was very helpful, thanks a lot

    • @AZAZEL_TK
      @AZAZEL_TK 8 років тому +1

      Giiiiiiiiiiiirrrrlll

  • @sultanbalobaid2463
    @sultanbalobaid2463 11 років тому

    thanks broo

  • @anzwertree
    @anzwertree 13 років тому

    Dude, you rock

  • @poshstars
    @poshstars 14 років тому

    you r right .

  • @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

  • @atrumluminarium
    @atrumluminarium 11 років тому

    It's that easy! :O

  • @KLFacebook
    @KLFacebook 11 років тому

    better than our doctor

  • @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?

  • @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.)?

  • @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.

  • @zufrieden23
    @zufrieden23 13 років тому

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

  • @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

  • @nervozaur
    @nervozaur 10 років тому +1

    hahaha, nailed it!

  • @mehwhyausername1
    @mehwhyausername1 3 роки тому +1

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

  • @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 :)

  • @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!

  • @jcdlrv
    @jcdlrv 14 років тому

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

  • @lucuslucuses5595
    @lucuslucuses5595 4 роки тому

    Are wages a part of SG&A?

  • @PercyWellington
    @PercyWellington 5 років тому

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

  • @gothicking999
    @gothicking999 14 років тому

    Excellent, just one question though, whats a widgit?

  • @kingtigercrownestate9102
    @kingtigercrownestate9102 Рік тому

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

  • @ruthlessluder
    @ruthlessluder 7 років тому

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

  • @loveormoney786
    @loveormoney786 4 роки тому

    Is CapEX included in COGS?

  • @KarenSanderson1
    @KarenSanderson1 11 років тому

    Revenues minus cost of doing business is income.

  • @jedThorpe
    @jedThorpe 6 років тому

    Is Operating profit same as EBITDA?

  • @twentysixstrings
    @twentysixstrings 4 роки тому

    Where is assets depreciation in costs of Income statement ?

  • @NapuZupaN
    @NapuZupaN 10 років тому +1

    ACME WIDGETS INC
    the company that does anything and everything for purposes of example.

  • @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

  • @shashankkalra990
    @shashankkalra990 6 років тому

    plz correct me if I am wrong but ROA is net income divided by total assets not operating profit divided by total assets

  • @linuxd
    @linuxd 3 роки тому

    I'm doing this alongside a live company that I'm looking at and some of these numbers aren't adding up.
    This company I'm looking at has 230 million revenue. Gross income is 27.97 million. And the operating income is 50 million. I'm missing something. I don't understand how operating income is more than gross income.