net profit calculated after include other income, should i exclude other income?
The company financial statement draw the net profit of the company, including the other income in the calculation.
for comparing of the net profit margin, should i exclude the other income or just run with it
Other Accountancy Qualifications
net profit calculated after include other income, should i exclude other income?
It may be more appropriate if there is significant other income to put the emphasis on operating profit. This is because in reality you are trying to compare the main business operations of the two companies and explaining those in your report (via the factors from the SWOT and PEST) However you could then go on and show how the company also benefits from other income (if material) and how this contributes to the overall profit.
Hi,
I think you should find out what is the nature of that other income. If you can find a reasoning why it should (on not) belong to a certain group, you should include(or exclude) it to that group.
But I would explain why I did in that way and what are the drawback of that approach.
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