The sum of all overhead and labor expenses required to operate the business. The difference between gross profit margin and total expenses, the net income depicts the business's debt and capital capabilities. Reflects the decrease in value of capital assets used to generate income. Also used as the basis for a tax deduction and an indicator of the flow of money into new capital. The difference between net profit and depreciation.
Interest is determined by the amount of investment within the company.
The difference between net profit before interest and interest. The difference between net profit before taxes and the taxes accrued. Profit after taxes is the bottom line for any company. Following the income statement is a short note analyzing the statement. The analysis statement should be very short, emphasizing key points within the income statement.