Introduction to the income statement | Stocks and bonds | Finance & Capital Markets | Khan Academy

Подписаться 8 млн

Просмотров 852 тыс.

50% 1

Courses on Khan Academy are always 100% free. Start practicing-and saving your progress-now: www.khanacademy.org/economics...
The income statement, revenue, gross profit, operating profit, net income, ROA and ROE. Created by Sal Khan.
Watch the next lesson:
www.khanacademy.org/economics...
Missed the previous lesson? Watch here: www.khanacademy.org/economics...
Finance and capital markets on Khan Academy: Life is full of people who will try to convince you that something is a good or bad idea by spouting technical jargon. Most of them have no idea what they are talking about. Don't be one of those people or their victims when it comes to stocks. From P/E rations to EV/EBITDA, we've got your back!
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: / channel
Subscribe to Khan Academy: ru-vid.com_...

Опубликовано:

18 авг 2009

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 153

@mizzprinks 12 лет назад

I am a medical student and recently an MBA student to learn about finance. This is the first time I actually wanna learn finance after starting the course, because it was simply so boring to a medical student like me and made absolutely no sense. Now it does, THANKYOU! GOnna watch the rest of your economics videos::)

@khanacademy 15 лет назад

That is one of the definitions. The standard formula takes out the effect of interest and tax savings from interest and is (net income + interest - tax savings from interest)/Assets which is essentially saying how much earnings would I have if I weren't paying debt. If you wanted a pre-tax ROA than you could just add back interest and taxes and divide by Assets (or EBIT/Assets which is, for the purposes of this examples, the same as Op profit/Assets

@Vhuimo 11 лет назад

awesome dude!!!, writing my exam tomorrow and they better not bring up the income statement because imma bowl it out like a boss after this video!!!#fFromSouthAfrica

@royray3671 3 года назад

My accounts teacher is wack and i never understand what he teaches But when i come to your channel it makes it so better. Thank you.❤

@ramyaviswesh 9 лет назад

Thank you! so much for all your teachings.I am able to learn financial statements better! than any regular class teachings. Thank you soo much, God bless u and u r family

@emmajackson3205 11 лет назад

You have saved my life! i have a huge business studies booklet due and i couldn't finish it without doing this and i did it!!! thankyou xxx

@matthewreid2664 9 лет назад

Thank you for explaining accounting to a marketing person in very simple terms....I've been struggling with my lecturer!

@oshua132 10 лет назад

Thank you Mr. Khan, these videos are going to allow people to understand this information and get in a game that they have been on the tail end of. Thank you, thank you, thank you. Many blessings to you and your family.

@RansonJoe 8 лет назад

Your channel is an incredible resource. Thank you!

@NP-cx8oc 10 лет назад

Thank you! It's very clear.

@Teeybabyboo 10 лет назад

That you so much for this video. I am currently registered in a finance class, and This is just what i needed to brush up on my accounting. very well explained, and easy to understand.

@AZAZEL_TK 8 лет назад

Giiiiiiiiiiirrrrrllllll

@blockomaniac 4 года назад

Teeybabyboo exact same for me

@musak.4068 Год назад

hey

@wonderphill5710 8 лет назад

im in grade 7 in 2016 and it helps a lot with my entrepreneurs' day

@piko9311 9 лет назад

This is very helpful, thank you very much indeed!

@Dapgirl70 11 лет назад

Great video! I'm feeling more confident. Thanks you!

@Systematik101 11 лет назад

This was a really good video tutorial! Thanks Man!

@tariqsheikh5569 10 лет назад

Every time when you repeact these things, learn something new. Thanks for explanning in such an easy way.

@0nlyt0me 7 лет назад

Great way of teaching this. Thanks!

@lizyip7951 6 лет назад

Thanks so much! I finally understand what is ROA and ROE!

@twingirlmk4128 4 года назад

Thanks so much for your amazing explanation for us. I can learn income statement better than before. In the class I really difficult to caught up a lesson with professor and I also can not understanding some point, but now I can understand 50% of it and I also learn to do some exercise too. ❤️😅

@InstTaxSolutionsLLC 11 лет назад

Excellent presentation about an income statement, which may also be known as a profit and loss statement. This is one of the most basic accounting documents, but it is also one of the most used financial reports.

@TheColoredComrades 12 лет назад

i just want to say I find you to be a very inspiring man and look forward to volunteering on your site as a translator.

@hassanbazzi3545 5 лет назад

Thank you so much for your explanation.

@ThunderersTriumph 11 лет назад

Nice help, thank you!!!!

@clubchelas4471 11 лет назад

this is great...thank you.

@123sasakigmailcom 11 лет назад

soo easy to understand... thanks man!!

@thulethianh 6 лет назад

Thanks for your teaching. It's really easy to understand. Wish you all the best

@megaelliott 15 лет назад

Thanks Sal for these videos.

@armani8983 6 лет назад

I thought about khan's academy while watching this video and saw channel name after it, omg it's khan's academy video ! awesome.

@JediFight 12 лет назад

Great slow explanation. Thank you. Very nice to have information like this available.

@owldat 11 лет назад

Awesome!!

@alfiedj 14 лет назад

Yea, thx man, helpful stuff!

@gilpuy 13 лет назад

yesss...very outstanding explanation...helping to understand all of those subject that makes me suck,but now i start to like it...you are amazing mr khan, i hope my real lecturer in campus is you sir...salute from indonesia

@diogocorreacoelho4288 12 лет назад

Damn fam, straight up you a G! Probably best explanation online! real talk, 100.

@LigiaChacon1414 9 лет назад

Interesting way to abbord concepts of financial statements. I could say that im known more about this area.

@travis9260 10 лет назад

Khan :) thank you

@HussainPhoto87 11 лет назад

Damn Accounting professor. You're my man!

@sandbar3000 3 года назад

I loved your video on the usefulness of the balance sheet. I love roi roa... And how liquid is the company. I have an MBA in 2011. But my depression has kept me low and it's very hard to sell my skills in job interviews. I have watched 25 videos of yours in this series so far. If it was not for my depression...I'd teach accounting!

@gilpuy 13 лет назад

@shashank4277 4 года назад

Beautiful!!

@19NooNaDa 11 лет назад

Thank you for the video.

@oneskill_ppt 7 лет назад

well explained, thanks Khan :)

@linuxd 3 года назад

He explains everything! From cells, to atoms, to finance. You're the man Khan

@jangzterrizer9405 6 лет назад

My goodness you're a good teacher

@cool70200 15 лет назад

Thanks for the video.

@hechen9980 7 лет назад

very helpful for me in a accounting college

@angeisrael6478 4 года назад

Thank youu so much I understand it better now

@Gilvids 4 года назад

This is gold!

@Geesjuh 12 лет назад

thankyou so much!!

@rolexshadow 5 лет назад

I have my final tomorrow and now I'm much more confident taking it

@namphetzzzz 11 лет назад

Thank you .

@amandeepaaaaa 11 лет назад

thanks man.. i like your stuff...

@rawsip5037 6 лет назад

very well explained

@alghafli89 9 лет назад

Thank you

@nkamal2007 12 лет назад

@khanacademy thankyou very much..apecial thanks to Mr. Salman Khan...

@2525georgia 13 лет назад

Why can't my lecturer explain it like this!!!! Thanks, you're the best!

@daniellos333 9 лет назад

very concise.

@rutujabankhele1889 4 года назад

better than my accounts proffessor!!!!!!!!!!!!

@petertjebooty 3 года назад

You're amazing!

@MrDaddydiva 5 лет назад

This could be the most useful video for start up's.

@iambond123 15 лет назад

HI Sal Your videos are really Usefull. Thanks Indeed Chirag Ali

@Dayao12 11 лет назад

I'm passing my quiz tomorrow! Thanks so much for this tutorial!

@COMNitoZAwomi 4 года назад

Did u pass??? Lol

@samreenashraf6426 3 года назад

helpfull. thank you

@ohmitchiebabe 14 лет назад

:) Easy to understand video

@imcurious1009 3 года назад

Legend!

@devbodaghe 12 лет назад

In real estate operating profit will bet the same thing as net operating income (NOI). Expect that taxes is included included.

@atrumluminarium 11 лет назад

It's that easy! :O

@sultanbalobaid2463 11 лет назад

thanks broo

@anzwertree 13 лет назад

Dude, you rock

@noisternes 10 лет назад

HI SAL! Thanks.

@vendettahappyno2769 7 лет назад

not what I needed but u r still quite smart .

@shirleygaietymoyo8041 9 лет назад

this was very helpful, thanks a lot

@AZAZEL_TK 8 лет назад

Giiiiiiiiiiiirrrrlll

@thehoneybadger9389 4 года назад

Thank you very much :)

@xx480o 9 лет назад

Just what u needed!! Thanks a lot :)

@AllDailyInspirations 8 лет назад

+Faiza Ismail lol u? or "i"

@xx480o 8 лет назад

+Linda A true I* lol :'D

@xx480o 8 лет назад

+Linda A true I* lol :'D

@nicoa263 7 лет назад

Not trying to dis. This guy is amazing and I learn from him everyday. But just to put my .2 out there. ROA is Net income divided by Total Assets. Just for all the people to know, one must account for Continuing Operations and Non-Recurring events to get the total net income. The example above, though perfect for covering the basics, is assuming that the operating profit is the net income to get the ROA.

@uknwtheusername 11 лет назад

Question: where would you find the figure for the company's total assets inside their financial statements (i.e. income state., balance sheet, cash flow statement, etc.)?

@meanmanturbo 13 лет назад

Maybe a little to much detail, or maybe it is just a difference between US and Sweden (since we have all these nice taxes here...), but when I did this at university you would always try to max out write downs on assets to minimize pre tax income to minimize the taxes you pay. Of course, this is bad for share holders, since it would make the company look worse of then it really is.

@poshstars 14 лет назад

you r right .

@zufrieden23 13 лет назад

the best!!!!!!!!!!!

@nervozaur 10 лет назад

hahaha, nailed it!

@yasu_tv 12 лет назад

Income Statement/Balance Sheet/Cash Flow Statement/G&A/SG&A/Cost of Goods Sold/Marketing/Sales/Gross Profit/Operating Profit/Enterprise Value/Return on Asset/ROA/Pre-tax Income/Net Income/Depreciation/Amortization/Return on Equity/ROE/Variable Cost/Fixed Cost/Sales People/Auditor/plain vanilla/jumble up/nuance/detract/

@KLFacebook 11 лет назад

better than our doctor

@delinquent2002 14 лет назад

You are really helping me to understand the things i did not understand befor...lol. I have a question and maybe you can help me with this.. I buy Merch.. from a wholesaler out of California. When I recieve my merch... and the invoice from the wholesaler there is a Freight charge. When i do my Quarterly Taxes, do i include the freight charges? Or is it a deduction?

@jcdlrv 14 лет назад

hi, i want to know what is the next video i would see after price and market capitalization.

@AminaLn 7 лет назад

Is there anything you can't explain? I wish I had such a broad knowledge of so many different topics.

@Redmile2006 7 лет назад

travel bug That's what happens when we spend our free time reading books and watching educational videos instead of playing video games and watching Netflix :)

@fionaNESS 12 лет назад

statement of changes in equity!!!

@SuperJillian 11 лет назад

Great videos, thank you. Question: You explained ROA = 1M/10M=10% in which $1M came from Operating Profit. I thought it should be Net Income, which is $350,000. Please explain since I am confused! Thanks

@mehwhyausername1 3 года назад

ROA really isn't generally based on operating profit. almost everyone uses net income as a general rule.

@PercyWellington 5 лет назад

is the interest actual interest or interest + principle? like from a mortgage payment?

@kingtigercrownestate9102 Год назад

Assuming that payroll for ALL employees is included and not just sales people right?

@lucuslucuses5595 4 года назад

Are wages a part of SG&A?

@AbhaySoorya 11 лет назад

Hey Sal - Thanks for making these videos..Quick question - you said that ROA = Operating profit/Total asset value....I thought it was Net Income/Total Asset Value? PLEASE confirm this..Thanks!

@KarenSanderson1 11 лет назад

Revenues minus cost of doing business is income.

@loveormoney786 4 года назад

Is CapEX included in COGS?

@gothicking999 14 лет назад

Excellent, just one question though, whats a widgit?

@jed_Garces 6 лет назад

Is Operating profit same as EBITDA?

@ruthlessluder 7 лет назад

Is the ROA = net income / asset? In your example it's operating profit / asset.

@blahlul95 7 лет назад

Why is return on assets based off the operating profit and not the net income?

@desse56 7 лет назад

Great question, was thinking about the same

@twentysixstrings 4 года назад

Where is assets depreciation in costs of Income statement ?

@shashankkalra990 6 лет назад

plz correct me if I am wrong but ROA is net income divided by total assets not operating profit divided by total assets

@linuxd 3 года назад

I'm doing this alongside a live company that I'm looking at and some of these numbers aren't adding up. This company I'm looking at has 230 million revenue. Gross income is 27.97 million. And the operating income is 50 million. I'm missing something. I don't understand how operating income is more than gross income.