Course · 20 min read

Understanding the P&L Statement (Part 1)

Karthik Rangappa, Zerodha Varsity · zerodha.com Free Beginner India

Varsity's line-by-line reading of an Indian company's profit and loss statement: revenue, other income, expenses and how they are presented in an annual report.

  • Revenue from operations is separate from other income; look at operations first.
  • Expenses are grouped by nature: materials, employee costs, finance costs, depreciation.
  • Read the notes to the accounts for what sits inside each line.
Open on zerodha.com ↗

It answers 3 questions

  1. What is EBITDA, and how do I calculate it?
  2. How do I calculate gross margin?
  3. How do I read a P&L, balance sheet, and cash flow statement?

Read with it

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  6. The second half of Varsity's P&L walkthrough, covering finance costs, depreciation, tax and profit after tax, with reader... zerodha.com Course · 20 min read Understanding the P&L Statement (Part 2) Karthik Rangappa, Zerodha Varsity
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