Learn about financial statements

Dear Friends,

           Greetings from Ram Financial Consultancy, Every one of you know that there are different types of analysis to find the potential winning stocks, for the people who are trying to understand the Profit & Loss Sheet of the company for there analysis we would like to present some details about the topics present in the Profit & Loss sheet:

Operating Income : Is all the amount of profit realized from a business's own operations, but excluding operating expenses (such as cost of goods sold) and depreciation from gross income.

Also referred to as "operating profit" or "recurring profit".

Operating expenses :  In Simple terms A category of expenditure that a business incurs as a result of performing its normal business Operations. One of the typical responsibilities that management must contend with is determining how low operating expenses can be reduced without significantly affecting the firm's ability to compete with its competitors. expenses toward selling expenses, Administrative, Manufacturing, Material Consumed ect....

Operating Profit :  The profit earned from a firm's normal core business operations. This value does not include any profit earned from the firm's investments (such as earnings from firms in which the company has partial interest) and the effects of interest and taxes.

Also known as "earnings before interest and tax" (EBIT).

In the nest article we will present you about some more topics or profit & Loss statement term.