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net profit calculated after include other income, should i exclude other income?

Forums › OBU Forums › net profit calculated after include other income, should i exclude other income?

  • This topic has 2 replies, 3 voices, and was last updated 8 years ago by Vanda.
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  • April 23, 2017 at 12:49 pm #383185
    qq419850428
    Participant
    • Topics: 3
    • Replies: 20
    • ☆

    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

    April 25, 2017 at 7:38 am #383602
    trephena
    Moderator
    • Topics: 23
    • Replies: 2623
    • ☆☆☆☆☆

    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.

    April 27, 2017 at 9:25 pm #384165
    Vanda
    Participant
    • Topics: 1
    • Replies: 6
    • ☆

    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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