Equation Of Income - Deepstash
Equation Of Income

Equation Of Income

Revenue- expenses= Profit earned

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Cracking the code of the Income Statement

It consists of three main categories:

  • Sales or revenue during a given time period. It includes sales (revenue) and Earnings-per-share (EPS)
  • Costs and expenses: “Above the line” are the cost of goods sold (COGS), cost of services (COS). “Below t...

Special Considerations

A common mistake companies make in their business model is that they often underestimate the costs of funding the business until it becomes profitable.

Many analysts believe that companies that run on the best business models can run themselves.

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8. Income - Saving = Expenses

8. Income - Saving = Expenses

Reality is our equation is always 'Income - Expenses = Savings' But we should priorities our savings and then we can spend freely on our expenses without any regret.

This mindset will eventually help you to have control over your spending and you will spend your money on things which you r...

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