Balance Sheets

The balance sheet shows how much money a company earned in a given time period (usually quarterly or annually) and are a good place to start telling how a company is going.

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Revenue

Also known as Income or Net Sales

Revenue is the total amount of money that a company recieves, typically from the service or product that they offer. This can be broken up into subcategories as well, depending on the company.

Cost of Sales / Cost of Revenue / Cost of Goods Sold

The cost of making and delivering a product to consumers. Represents the direct costs to produce or offer the service of the company. The costs associated with this typically include direct labor, direct materials such as raw materials, and the overhead that's directly tied to a production facility or manufacturing plant. Retailers typically use cost of sales, while manufacturers use costs of goods sold. Abbreviated as COGS

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Gross Profit

Gross income is the profit that a company makes after deducting the Cost of Sales/Revenue/Goods Sold (interchangeable)

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Selling General and Admin Expenses

Everyday operations costs that are not included in the production and delivery of services. Some examples are marketing, advertising, rent, and utilities.

Research and Development (R&D) Expenses

Direct expenditures from a company developing, designing, and enhancing their products.

Operating Income

Takes the gross profit from a company and subtracts wages, operating activities, supplies, and utilities.

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Interest Expense

The cost for borrowing funds, how much interest the company paid on its debts such as bonds and loans.

Interest and Investment Income

How much the company earned from interest on investments, such as bonds, loans, and investment in other companies stocks and bonds.

Net Interest Expenses

The difference from the prior two categories, how much the company gained or lost from interest expenses.

Other Non-Operating Income (Expenses)

Any additional income or expenses not directly related to the company's core business operations. Examples such as the sale of assets, foreign exchange gains or losses, and other non-recurring items.

Earnings before Taxes (EBT), Incl. Unusual Items

Companies earnings before deducting income taxes, including all sources of income and expenses, such as unusual or one-time items that are not expected to occur regularly.

Income Tax Expense

Amount of taxes a company is obligated to pay based on taxable income. Calculated by applying the applicable tax rate to the company's taxable income.

Earnings from Continuing Operations

Net income that accounts for a company's regular business activities. Typically the primary source of income.

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Net Income (to Company)

Profit earned by the company after deducting all expenses. The overall profitability of the company.

Net Income to Common Including (or excluding) Extra Items

The net income available to common shareholders, including any non-recurring items or events that are unusual in nature and infrequently occur.