Post by capitalstars Equity tips on Jan 5, 2016 17:19:40 GMT 8
Understanding Quarterly Results of a Company and Share Markets - Today, IT or information technology giant Infosys Infosys offered its quarterly results. Let’s go, these findings may explain how. The balance sheet (you may surprise Balance sheet roll is called in Hindi) is a reflection of the health of the company profit and loss Account is a measure of the progress of the company. Infosys quarterly results from the link above in detail in the PDF file can be downloaded here or from a given image file you can understand it.
Here today we will talk only of profit and loss account.
The first item…
1. Income from Software services and products (software services and products income) item this place is mostly income from total sales (Income from Total Sale): Here you will receive the goods or services of the company in the quarter sales Amount. How fast growing company (Growth tax) is an indicator that it is. Here you will see that over the same period last year, Infosys has risen nearly 51%.
2. Software development Expenses (software promotion costs) Total purchase cost is mostly the place item: Here you will receive the amount of expenditure on raw materials, supplies, or services. It is worth noting that it costs less than the amount of money the sale of the company in the ratio increases, it is good for health. The cost of Infosys grew from 53.89%.
3. Gross Profit (gross): Total profit is the difference between the sale and purchase. The gross profit increased 47%.
4. Operating Expenses (expenses affected): In addition to the raw materials to produce goods or services are for all other expenses. Note that this does not necessarily mean that the material costs grow in proportion to the product. Building because some expenses such as rent or staff salary is no direct connection to the material products. It may also depend on the item to which the company is engaged in the field. Infosys costs have risen by 42%.
5. Interest and Depreciation (interest and depreciation): these expenses because of the production process has nothing to do with them is counted separately. They are also important in the calculation of income tax separately. Interest is paid on the borrowed capital. Where large capital companies to borrow large sums of money is fixed to the important this item increases in interest rates and changes can be effective on the company’s profit. It is also a matter of seeing that as the company is more profitable to pay off my debt that decreases the amount of interest and profit are growing. Devaluation is actually a fictitious expenses and the company does not have its pay off.
6. Other Income (Other Income): Note the small and insignificant little amount you can cheat very big. Sometimes the company will invest an old plant or the Property is sold to earn big bucks in this item, but the item was in increase in the company’s income does not increase permanent. Facial seeing exceptional growth in net income at times hurriedly bought a stock is, but it definitely should check that the increase in revenue was driven by the Company’s actual working or by other income.
7. Net Profit (Net Income): This is the amount which he saves the company after paying taxes. This amount is linked to every investor. Part of the money is in the form of dividends to investors and the remainder is stored in the company’s capital or the company’s expansion, debt repayment or acquisitions of other companies can be used to. The Infosys net profit increase of 51%.
Update: The results of the image by changing the audited results Image has been erected. Some difference in the figures and the items will look.
Next time see EPS (earnings per share), P / E ratio and their share price relationship.
Hopefully this series of Share Markets like you’d be coming. You tell us to comment further on the Share Markets what you read and want to know.
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