I have the published financial statements of commercia banks, I would like to identify the elements used to calculate the 'net interest margin' Thanks
Income statement in financial reporting is different in this sense that in that income statement all expenses and incomes are shown as incomes and expenses and there is no classification of fixed expenses or variable expense while in contribution margin income statement expenses are shown in this way that separate the fixed expenses from variable portion of expenses.
The gross margin formula is gross profit divided by revenue. The gross profit and revenue amounts can be found by looking at a companies income statement.
You must subtract the cost of goods sold from the net sales to get the gross margin (same as gross profit)
A contribution margin income statement is an income statement in which all variable expenses are deducted from sales to arrive at a contribution margin. It is the expanded version.
You take the Earning before interest and taxes (EBIT)/sales=Operating profit margin
EBITDA Margin = EBITDA/Sales
sales-variable coste= contribution margin
contribution margin = sales - variable cost
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Cost of goods sold is an expense account that shows up on the income statement. It is subtracted from sales to calculate gross margin.
Proforma contribution margin income statement Sales revenue xxxxLess: Variable cost xxxxContribution margin xxxxLess: Fixed Cost xxxxprofit (Loss) xxxx
Contribution margin income statement differs in this way that it only deduct the variable cost from sales to point out that how much is any unit of product is contributing towards recovery of fixed cost while normal income statement don't show this information.