About this lesson
The income statement, from revenue to NPAT in Google Sheets
In Google Sheets, an income statement steps down from revenue: gross profit = revenue − cost of goods sold, EBITDA = gross profit − operating expenses, EBIT = EBITDA − depreciation and amortisation, profit before tax = EBIT − net interest, and NPAT = profit before tax − tax (=B10*$B$18). Divide each profit line by revenue for its margin: =B4/B$2.
Using Excel? Do this lesson in Excel.
=B2-B3What you'll practise
Lay out Ironbark Building Supplies' income statement from revenue down to NPAT, then read the margins to see why profit fell while gross margin rose.
4 steps · 40 points · the cells outlined in gold below
- income statement
- gross profit
- EBITDA
- EBIT
- NPAT
- margin analysis
The data
| A | B | C | |
|---|---|---|---|
| 1 | ($m) | FY24 | FY25 |
| 2 | Revenue | 412.6 | 448.3 |
| 3 | Cost of goods sold | 268.2 | 285.9 |
| 4 | Gross profit | ||
| 5 | Operating expenses | 79.4 | 92.6 |
| 6 | EBITDA | ||
| 7 | Depreciation and amortisation | 18.7 | 21.2 |
| 8 | EBIT | ||
| 9 | Net interest expense | 6.3 | 7.9 |
| 10 | Profit before tax | ||
| 11 | Income tax | ||
| 12 | NPAT | ||
| 13 | Margins | ||
| 14 | Gross margin | ||
| 15 | EBITDA margin | ||
| 16 | NPAT margin | ||
| 17 | |||
| 18 | Tax rate | 30% |