benchmarking



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please how do i calculate the percentage values in the income statement analysis?

2 Answer(s)


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You can do that by just ensuring what ratio you need for analysis.
Generally we compare everything by revenues so we do that
But as Interest expenses are taken as of operational income.Because we are interested in amount we are spending as an interest with respect to our earnings before tax.

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When you mean "how do i calculate" do you mean the excel formulas or the rationale behind why we are doing this?
The % values are typically used to provide a comparison of a companies financials year by year or when you want to compare the financials of 2 or more companies.

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