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debunk_this_12 t1_j9go370 wrote

Man where do I start. First it’s called cogs not cost of sales, secondly it’s not gross profit and operating profit… it’s operating income and gross income… secondly it’s operating income is your operating revenue -operating expenses. Ebitda = operating income-overhead, gross income = ebitda-depreciation. Net income = gross- taxes.

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cooldaniel6 t1_j9gqg6h wrote

OP pulled the terms and data from Walmarts own earnings report.

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debunk_this_12 t1_j9gvcjx wrote

It’s not gaap. Period. It doesn’t show u how much money a company actually makes. Period.

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codybevans t1_j9gvcoz wrote

I mean, yea this is what your typical Econ class calls it but I’ve seen it called a few different things in different businesses. The chain I work for calls it Gross Margin and Net Margin. We also use cost of sales. Typically restaurants I’ve managed call it COGS.

Edit: Nitpicking something as small as “cost of sales” vs. “cost of goods sold” is pretty pedantic.

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IncomeStatementGuy OP t1_j9gyjph wrote

I went with "cost of sales" as this is what Walmart calls the line in their SEC filing.

And I used the terms "gross profit", "operating profit" and "net profit" for consistency (consistently "profit"). Accounting has synonyms and that's ok.

I tend to get worried if companies report any "adjusted" metrics.

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codybevans t1_j9gyufk wrote

That’s totally understandable. The numbers mean the same thing. I appreciate you taking time to make these. They’re really insightful.

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