Net income, net earnings, bottom line—this important metric goes by many names. Here’s how to calculate net income and why it matters.

Owner’s equity is listed on a business’s balance sheet. It can be negative if the business’s liabilities are greater than its assets. Owner’s equity is not always a reflection of the value or …

Discover the financial strength of your business through retained earnings. Learn to find, calculate, and leverage this key metric for long-term success.

Feb 28, 2024 · If you do your own bookkeeping in Excel, you can calculate cash flow statements each month based on the information on your income statements and balance sheets.

By drawing on info from the income statement and the cash flow statement, you can create pro forma balance sheets. However, you’ll also need previous balance sheets to make this …

Feb 24, 2024 · How profitable is your business? The only way to really know is to create an income statement. Here’s how to put one together, how to read one, and why income …

If you recorded a negative net income for the year, your EBITDA can tell you a more hopeful story! You can calculate your EBITDA easily by looking at your financial statements. Consider …

Before kicking back and relaxing, she wants to figure out what her net income was for the trade show. To do this, Bertie uses the FIFO method to figure out her Cost of Goods Sold.

Net income is her total income for the month. Some or all of that income may be subtracted on the cash flow statement, depending how much of it is in accounts receivable (not paid) or in the …

Knowing your operating expenses (OPEX) allows you to calculate your company’s operating expense ratio (OER). The OER gives you a direct comparison of your expenses to your …