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BI & Analytics » Profitability and Return » P&L Funnel (Detailed)

Profitability ratios or Income Statement ratios or P&L ratios- detailed

This is a more detailed version of P&L funnel (condensed).


Presented as a funnel, this chart shows how much each dollar of revenue boils down to net income or net profit and how it makes that journey through other components of Income Statement. 


You can select any one or more values from the 'FY ending Dec', Country, Sector and Industry fields to see the profitability ratios (P&L or Income Statement ratios) of listed companies comprised in the selection.


Profitability ratios or P&L Ratios or Income Statement ratios are different components of Income Statement- Total Income, Cost of Total Income excluding Depreciation & Amortization, Gross Income, Depreciation & Amortization, Total Opex,   Operating Profit before Interest or EBIT, Pre-tax Income, Income taxes  and Net Income, expressed as percentage of Total Income or Turnover. 


The ratios, analyses represented in the below chart are based on information drawn from financials (e.g. financial statements comprising balance sheet, income statement or profit & loss account) of listed companies across the globe.


What's the net profit margin would you bet a business is earning if you're not provided with information about the nature of business or even country? In other words, what's the average net profit margin ratio of all businesses?


The magic number is 6.9%, as you can see above.


What you don't see is the depth and width of the underlying data yielding this average. This is what all the 76,820 sets of income statements belonging to 19,529 listed companies falling under 18 different sectors (including financial) and 70 different industries and spread, spatially across 30 countries and temporally across 4 years, average out to! Hope you get a hang of how representative this could be of any and all businesses under the sun!


Following are the other P&L ratios of the said universe of financial statements.


Cost of goods sold to total income ratio: 66.8%

Depreciation & amortization to total income ratio: 4.2%

Gross margin or gross profit ratio: 29%

operating expenses to total income ratio: 18.8%

Operating profit or Ebitda margin: 10.2%

Pre-tax margin: 9.1%

Net income margin: 6.9%

Income taxes to total income ratio: 2.5%