Objectives On completion of this tutorial, you will be able to:

• Identify the main types of revenue and expense items that appear on an income statement
• Calculate the key earnings/profitability measures and ratios that can be derived from income statement values

Tutorial Overview This tutorial describes in detail the structure and elements of an income statement and introduces various income/profit measures, such as gross and net income/profit, and profitability ratios, such as gross and net margins, that can be derived from income statement values. The tutorial also covers measures such as earnings per share, dividend payout ratios, and dividend cover. A good understanding of all these measures, and related accounting policies and practices, will help credit analysts and others to understand a company's profitability/earnings, as well as the key drivers and sustainability of this profitability/earnings. Prerequisite Knowledge Credit Analysis - Balance Sheet Analysis Tutorial Level: Intermediate Tutorial Duration: 60 minutes