What exactly does the income statement analysis include

The content of income statement analysis mainly includes the following three aspects:

1) Analysis of the main statement of the income statement.

Through the analysis of the main statement of the income statement, the increase and decrease of various profits, the changes in the structure and the income and costs that affect the profits are analyzed.

1.Amount of profits.

Analysis of changes in increases and decreases. Through the horizontal analysis of the income statement, from the perspective of profit formation, it reflects the changes in the amount of profit, and reveals the management performance and existing problems of the enterprise in the process of profit formation.

2.Analysis of changes in profit structure. The analysis of profit structure changes is mainly based on the vertical analysis of the income statement, revealing the relationship between various profits, costs and expenses and income, so as to reflect the profit composition, profit and cost level of each link of the enterprise.

3.Enterprise revenue analysis. The contents of enterprise revenue analysis include: revenue recognition and measurement analysis; Analysis of the factors affecting revenue and sales volume; Analysis of the composition of corporate revenue, etc.

4.Cost analysis. Cost analysis includes analysis of the cost of goods sold.

and period cost analysis. Product cost of sales analysis includes total cost of sales analysis and unit cost of sales analysis; The period expense analysis includes selling expenses.

Analysis and management expense analysis.

2) Analysis of the attached statements of the income statement.

The analysis of the income statement schedule is mainly on the distribution of profits.

Tables and segment statements are analyzed.

1.Profit distribution statement analysis. Through the analysis of profit distribution statement, the changes in the quantity and structure of profit distribution of enterprises are reflected, and the impact of changes in profit distribution policies, accounting policies and relevant national laws and regulations on profit distribution is revealed.

2.Segment report analysis. Through the analysis of segment statements, it reflects the operating conditions and operating results of enterprises in different industries and regions, and optimizes the industrial structure of enterprises.

Make strategic adjustments and point the way.

3) Analysis of notes to the income statement.

The analysis of notes to the income statement is mainly based on the notes to the income statement and the statement of financial facts.

and other relevant details, analyze and explain the income statement of the enterprise.

and the changes in the important items in the attached table, which deeply reveal the subjective and objective reasons for the changes in profit formation and distribution.

First of all, it is recommended that you do not separate the relevant statements for separate analysis, because they are closely related to each other, and the following is an analysis of ideas: 1. The analysis of sales revenue and profit changes is in the form of charts, reflecting the annual changes, and analyzing the industry competition structure and industry profits 2. Profitability analysis of the reasons for the change in the rate of return on assets and sales profit margin compared with the ratio of previous years and predicting the profitability of the future period of time 3, Operational capability analysis, accounts receivable turnover rate and current asset turnover rate, etc., analysis of operational risks faced by enterprises 4, growth analysis, sales growth rate and profit growth rate 5, solvency analysis, asset-liability ratio and current asset ratio 6, cost analysis, sales cost ratio, management expense ratio, etc. 7, comprehensive analysis of operating conditions, annular chart analysis, changes in each ratio, the above analysis are listed in the form of charts (columns, curves, etc.), and the following text analysis will be better. ]

Income statement. The main project analysis is as follows:

1. Operating income.

It is the source of cash and profits for enterprises to compensate for various costs and expenses, and occupies the first place in the income statement;

2. Operating costs and taxes: Operating costs are mainly the costs and expenses that the company needs to directly spend to generate operating income, which mainly include raw material costs and fixed assets.

depreciation expense, fuel power expense, labor expense, etc. Business tax is the tax levied directly linked to the sales income of fish, usually including business tax and urban maintenance and construction tax.

education surcharge, etc.;

3. Period expenses: all kinds of expenses that are not directly related to the sale of goods or the provision of labor services incurred during the accounting period, usually including sales expenses, management expenses, and financial expenses;

4. Profit and loss on changes in asset value: mainly the gains or losses brought by changes in assets to the enterprise, mainly through "asset impairment losses" on the income statement.

The data of the three accounts of fair value change and "profit and loss on disposal of non-current assets" are reflected;

5. Investment income: It is the return obtained by the enterprise from foreign investment, including the dividends received from foreign investment and the interest received on bonds, as well as the difference between the amount recovered at maturity or the transfer of bonds before the investment is higher than the book value;

6. Operating profit: It is the result of operating income minus operating costs, business taxes and three expenses, plus other business profits, which can accurately reflect the profitability of the company's operating business;

7. Non-operating income.

and expenditure: refers to the inflow or outflow of cash caused by some activities that are not related to business activities or occur by chance in addition to normal business activities and investment activities.

The income statement can judge the company's profitability, and the reference indicators usually include net profit and earnings per share.

Wait. Analyze net profit year-on-year or quarter-on-quarter, an increase in net profit indicates good operating conditions, and vice versa indicates poor operating conditions; Earnings per share: It reflects the earnings of major shareholders, and the gradual increase in earnings per share represents strong profitability.

The income statement mainly includes four indicators: operating income, operating profit, total profit and net profit. The higher the operating income, the more money earned this year, but the cost is not excluded, so the operating income should be excluded from various costs.

After excluding the cost, it becomes the operating profit, and the operating profit reflects the company's profit income and income outside the business or grandson industry, but the non-operating cost needs to be excluded.

After excluding non-operating costs, it is the company's total profit, and after the total profit is deducted from taxes, it is the company's net profit. Investors can know the company's profitability and return on investment from the net profit. Wait.

The income statement analysis method is as follows:

1. Analysis of individual items in the income statement.

It can be seen that the items and subjects in the financial statements are highly summarized and condensed, just like a handful of dry goods, the financial staff will present the essence of the data to you, on the surface it is difficult to see how the quality is before the condensation, which requires the business owner to use the "water" of professionalism and experience to soak in this data, restore the information behind it, and make it full again.

2. Solvency analysis.

Solvency should also be combined with the information provided in the cash flow statement, and having profit without cash flow will also affect solvency. Interest Coverage Ratio = (Pre-tax Profit + Interest Expense) Interest Expense.

3. Profitability analysis.

For the profitability of the enterprise reflected in the income statement, different report users have different angles of concern, and they should analyze it from their own perspective to get the desired effect.

Income statement analysis is to analyze the ability of an enterprise to organize revenue, control costs and expenses to achieve profitability, and evaluate the operating results of an enterprise. At the same time, through the analysis of income and expenditure structure and business structure, the contribution of the growth of each professional performance to the overall efficiency of the company, as well as the contribution of the operating results of different branches to the overall profitability of the company.

Through the analysis of the income statement, the sustainable development ability of the enterprise can be evaluated, and the profitability it reflects is more concerned by the investors of listed companies, and it is the "barometer" of the capital market.