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codybevans t1_j9gvcoz wrote

Reply to comment by debunk_this_12 in [OC] How Walmart makes money (they just released earnings for the fiscal year ending January 31) by IncomeStatementGuy

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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