Episode Details
Back to EpisodesHow to make a Profit and Loss P&L Statement
Description
During this show, you will discover …
How knowing your numbers gives you an honest assessment of your business … and how it sets your company apart from and above your competition What a P&L is and why you want one, even before a lender asks for it
Where Net Revenue and Cost of Goods Sold come in
What Gross Margin and Fixed and Variable Expenses are
How to figure Earnings Before Taxes and Net Income
How comparing P&L statements over time gives you a handle on the health of your business
What Gross Profit Margin is, and its relationship to Cost of Goods Sold (COGS)
How Operating Profit Margin measures company pricing strategy and operational efficiency
How Net Profit Margin measures the % from each dollar of sales a company keeps in earnings
How Operating Ratio shows how efficient management is … how rising operating ratios mean inefficiencies and falling operating ratios indicate efficiency
How trend analysis can give you a handle on whether your business is moving in the right direction … or not
And how you can use trend analysis to determine if your business needs a course correction
How knowing your numbers gives you an honest assessment of your business … and how it sets your company apart from and above your competition