Income Statement Analysis
This week’s DQ focuses on the Income Statement. It builds on the insights we gained in Week 2, but goes a little deeper in our use of financial statement analysis skills.
Note: We want to encourage a rich exchange of information and ideas in this discussion. Please select an Income Statement line item or ratio based on the first letter of your last name as indicated below.
Locate and post a screenshot of an actual Income Statement from the latest fiscal year for one of the following companies:
Tupperware Brands
Tesla
Pick an Income Statement Line Item or Ratio from the list below:
Select from Here if Your Last Name
Starts with A-K
Line Item
Select from Here if Your Last Name
Starts with L-Z
Ratio
Revenue (aka Sales, Turnover)
Cost of Goods Sold/Cost of Sales
Selling, General and Administrative Expense
Gross Profit
Operating Profit
Net Profit
Gross Margin (%)
Net Margin (%)
Return on Sales
Return on Equity
Return on Assets
Earnings Per Share (EPS)
EBITDA
What does this line item or ratio measure and why is it important item for Management to understand this number?
Identify the past 4 years of amounts for your line item or ratio (Note: this will require you to track down additional historical
Income Statements to get the older data). Share this data with the class using a data table or chart.
Answer the following questions:
What is the trend for this line item or ratio?
Has the line item or ratio amount increased or decreased?
Is this a “good” thing or a “bad” thing? For this company?
What might management do to improve this line item or ratio?
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