nsuchaud – insights that matters

💡 Simplified view of a P&L

What’s included in a P&L

  • Revenue: Think of revenue as money coming in the door.
  • Expenses: Think of expenses as money going out the door.
  • Net income/profit: The company’s profits are calculated by subtracting expenses from revenue. This is the money left over after everything else has been paid for.

How Tech company make money from the revenue to the net income

here is an example of what an income statement looks like when you open an annual (10-K) or quarterly report (10-Q). This is Microsoft’s quarter ending in September 2022. It also shows the quarter ending in September 2021 as a comparison.

How Microsoft make money from the revenue to the net income

Key ratios

How company making money – ratio computation