How to Read an Income Statement
Want to look at a company’s income statement but don’t understand it?
Well, today I’m going to help you learn how to read an income statement.
An Income Statement shows you the income coming in, and the expenses paid out.
Let’s go through one on Schwab together.
Above is the Income and Operating Expenses portion of an income statement of a company our security analysis mastermind examined today.
First, in the small note on the top left it says the numbers are in millions. So Gross Revenues for the 1st quarter of 2020 were -$1,665,000,000. Red numbers are negative numbers.
So this company lost over a billion dollars in the first quarter (yikes!).
Here is where they modify the income and expenses data.
Here’s where they start calculating net income.
Now we examine stock dividends and normalized income.
