best website to look for a company’s financial statements

POSTED BY vj-manutdfan ON December 8, 2011 4:26 pm COMMENTS (2)

Hi Guys,
query1)According to my understanding
gross profit=Net sales – Cost of goods sold
operating profit=gross profit-cost of goods sold-amortization and depreciation-other operating expenses
Net income(final profit)=Gross profit – operating profit – taxes – interest.
Please tell me if this is correct.Because i found diff explainations wen i tried to google the above terms, and i got slightly confused.please correct me if am wrong
query2)Is net income referred to as earnings.Is this figure used in calculating earnings per share.pls clarify
query3)I was going through the financials for airtel in rediff site and i found that gross profit lesser than operating profit(which according to my understanding is logically not possible),so i checked moneycontrol site which was having gross profit higher than operating profit.How come two sites give different numbers in these type of key financial data?please tell me which is correct
link for rediff:http://money.rediff.com/companies/bharti-airtel-ltd/15200022/results-quarter
link for moneycontrol:http://www.moneycontrol.com/financials/bhartiairtel/results/quarterly-results/BA08
Thanks in Advance,
Vj

2 replies on this article “best website to look for a company’s financial statements”

  1. vj-manutdfan says:

    Thanks a lot

  2. 1) The definitions are correct. Terminology difference do exist sometimes but by far the above defns. are right.
    2) Yes, Net income is referred to earnings and is used to calculate EPS, P/E etc. Operating margin is Operating Profit/Revenues and Nett or Net Margin is Net income/Revenues. As one can see earnings in paper can be manipulated in 1000 ways – show higher/lower depreciation, use deferred tax assets/liabilities to smooth earnings etc.
    3) AFAIK, Operating profit cannot exceed Gross Profit! Moneycontrol is generally reliable most of the time. If need to make decisions I would cross check the numbers with company’s webiste itself.

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