Income Statement Calculator
“Welcome to our financial formula calculator! Here, you can easily calculate important financial metrics to get a better understanding of the health of your business.
The inputs you need to enter include:
- Revenue: This is the total amount of money generated by the sale of goods or services.
- Cost of goods: This is the cost associated with producing and selling the goods or services.
- Operating expenses: These are expenses incurred in the day-to-day operations of the business.
- Depreciation: This is the decline in the value of an asset over time.
- Amortization: This is the process of spreading out the cost of an intangible asset over time.
By hitting the intermediate result buttons, you can calculate:
- Gross Profit: This is calculated by subtracting the cost of goods from the revenue. It represents the profit the company has made before accounting for operating expenses.
- Operating Income: This is calculated by subtracting operating expenses from the gross profit. It represents the profit the company has made from its operations.
Finally, by hitting the EBITDA button, you can calculate the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This metric is used to assess the financial performance of a company and is calculated by adding back depreciation and amortization to operating income.
Along with the EBITDA result, you will also receive a comment and suggestions for actions to improve your results. A positive EBITDA indicates that the company is generating profits, while a negative EBITDA indicates that the company is operating at a loss.”