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Understanding Pro Forma Income Statements
https://www.sofi.com/learn/content/pro-forma-income-statement/
A pro forma income statement is a financial report that projects a company’s future income, expenses, and profitability based on specific assumptions or hypothetical scenarios. Unlike traditional income statements, which reflect historical data, pro forma statements provide a forward-looking view, helping businesses evaluate the potential impact of decisions such as mergers, product launches, or expansion. […]
What Are the Differences Between Gross and Net Income?
https://www.sofi.com/learn/content/gross-income-vs-net-income/
If you’re a salaried employee, the amount of money that you bring home with each paycheck plays an important role in your overall financial picture. While there are several dollar amounts that likely appear on your paycheck, two of the most important are your gross income and your net income. Your gross income represents the […]
Net Operating Income vs EBITDA: Similarities, Differences, and How to Calculate
https://www.sofi.com/learn/content/noi-vs-ebitda/
Net operating income (NOI) and EBITDA (earnings before interest, tax, depreciation, and amortization) are similar metrics used to measure a company’s profitability based on its core business operations. Different industries choose different metrics. NOI is generally used in real estate to evaluate income-producing properties, whereas EBITDA is most often used to measure how efficiently a […]
Guide to Variable Costing Income Statements
https://www.sofi.com/learn/content/variable-costing-income-statement/
A variable cost is an expense that rises and falls in proportion with how much your business produces or sells. A variable costing income statement is a type of income statement in which you subtract variable expenses from total sales revenue to arrive at a separate line item called contributions margin. Contributions margin is the […]
EBITDA vs Gross Profit: Examining the Differences and Similarities
https://www.sofi.com/learn/content/ebitda-vs-gross-profit/
Gross profit and EBITDA (earnings before interest, tax, depreciation, and amortization) both measure the profit, or earnings, of a business. However, they do so in different ways. As a business owner, you may want to use both metrics to get a full picture of your company’s revenues and how efficiently it is operating so you […]