Profit And Loss Statement Extract Data For Free

It tells investors how much gross profit every dollar of revenue a company is earning. Compared with industry average, a lower margin could indicate a company is under-pricing. A higher gross profit margin indicates that a company can make a reasonable profit on sales, as long as it keeps overhead costs in control.

How to Prepare an Income StatementStep 1: Gather the necessary information. In an accounting system, the best tool to take information from would be the "adjusted trial balance".Step 2: Start with the heading.Step 3: Report all revenue accounts.Step 4: Report all expense accounts.Step 5: Compute for the net income.

The revenue of the company for the given period (yearly or quarterly) The expenses incurred to generate the revenues. Tax and depreciation. The earnings per share number.

Analyzing a P&L StatementSales. This may seem obvious, but you should review your sales first since increased sales is generally the best way to improve profitability.Sources of Income or Sales.Seasonality.Cost of Goods Sold.Net Income.Net Income as a Percentage of Sales (also known a profit margin)

You may be asking yourself, what is a good profit margin? A good margin will vary considerably by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or good), and a 5% margin is low.

Each employee in a small business drives the margins lower. One study found that 90% of all service and manufacturing businesses with more than $700,000 in gross sales are operating at under 10% margins when 15%-20% is likely ideal.

Choose a time frame. List your business revenue for the time period, breaking the totals down by month. Calculate your expenses. Determine your gross profit by subtracting your direct costs from your revenue. Figure out if you're making money.