Investment Banking Nerd

  How to Analyze an Income Statement ? There are two ways we will do it while using the Excel ! 1. Trend Analysis  2. Vertical Analysis  Trend Analysis  In the analysis we will compare the year by year analysis for the whole statement.  If you have a statement you can do it easily but for practise you can download some companies statements like Tata and GE Vernova for example. So if we take the first step we will see Revenue and mostly statement shows two to three years numbers, if we have March 24 and March 25 we will do the analysis like,  = (March 25 Revenue- March 24 Revenue) / March 24 Revenue And we can do it for all line items.  Vertical Analysis  In this analysis we will compare each item by a particular item, where we see that Revenue is the most prominent item in Income Statement we can compare it with all others for example only.  So the formula will be  = Cost of Sales / Revenue or = Insurance Expense / Revenue (in percentage...

Income Statement Input of Revenue and Cost of Revenue & then subtracting Revenue from Cost of Revenues to calculate Gross Profit . And then Gross Margin by dividing Gross Profit/Gross Revenue. And Calculate EBITDA by adding Operating Income with Depreciation and Amortization And Calculate EBITDA Margin by dividing EBITDA/Revenue Balance Sheet Calculating Total Book Capitalization by adding Total Debt with Shareholder’s Equity Full Statement