What is a profit and loss statement?

The profit and loss statement and loss of the apparatus is a type of financial document that seeks to compare the results of the commercial and loss statement with the same type of statement in previous periods. The aim is to determine the amount of percentage, if it exists, this could be considered. This approach is sometimes referred to as trend analysis, because the aim is to identify any signs of a consistent movement that the company must protect against or accept as a means of continuing to improve the lower line.

One of the first objectives of the statement and the loss of horizontal analysis is to identify the amount of change from one period to the other, expressed as a percentage. This allows you to determine the percentage of the increase or decrease that has occurred over time and use this data to plan for the future. For example, if a profit and loss statement for the season ended two years ago showed the sale of 500,000 USDDOLAR (USD) and a profit and loss statement for the last closed season reflects sales of 1,000$ 000 USD, resulting in an increase of $ 500,000 from one year to the next. From a percentage point of view, this means that the company recorded a 100% increase in sales for the time frame.

The actual format for statement and loss and loss of horizontal analysis will usually include the actual data for two participating periods. Revenue for the initial season is deducted from income for the closure of the season, resulting in the actual amount of increase or reduction, which is recorded as a line item in a statement. This number is divided by income for the beginning, resulting in a percentage that is either positive or negative, and is recorded as the final value in the body of the document

Take the time to prepare the horizontal analysis of iPhization nome is much easier to compare the growth of business with what is happening in this industry. If the message indicates the percentage of growth that is before the average industry, belowNothing apparently does a good job in terms of public relations, marketing and growing and maintaining a client base. If the results of the statement and loss and loss of the apparatus of the horizontal analysis indicate that the company is below the average of the industry, this can serve as a basis for reassessing current methods and making changes to improve the growth rate.

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?