Economic analysis
The income statement constitutes, due to the nature of the information it provides, the accounting statement relevant to economic analysis.
The cascading structure adopted for the income statement contributes decisively to the effectiveness of the analysis, as it allows the isolation of the overall income or added value generated in the operation and the differentiation between the operating result (gross and net), the financial result, the result before tax, which includes the operating results and the financial result, and the result after payment of corporate income tax.
The ratios in this section use information exclusively from the income statement. For all non-financial corporations, a graphic representation of the Value Added Rate and the Personnel Expenses Rate by autonomous community and sector and by size and sector has been included; For the so-called Large and Small sized companies, the graphs that appear are by sector or by autonomous community.
- Value Added Tax (VAT)
It is defined as the percentage that added value represents with respect to production and therefore summarizes the capacity to generate income per unit of product.
- Personnel Expense Rate (TGP)
It is defined as the proportion of personnel expenses in relation to added value and measures the participation of salaried employment in the distribution of income generated by the company. Its complement is the gross operating profit or surplus rate, not included due to its ease of calculation (100-TGP).
- Gross operating margin (GOM)
It is defined as the proportion that gross operating profit represents in relation to turnover and is the basic or primary measure of operating profitability from the company's perspective.
Gross operating profit must be sufficient to cover amortization and provisions, cover financial charges, settle corporate tax, provide self-financing funds (reserves), and provide adequate remuneration to shareholders (dividends).
- Economic profitability (REC)
It is the percentage that represents the economic profit or operating profit (before paying interest on debts, i.e. financial expenses) with the total invested capital (real assets). This ratio is also called return on investment. Real assets are calculated as total assets net of long-term and short-term provisions.
- Financial profitability (FR)
It is the percentage that represents the result before taxes (RAI) with respect to the net own resources (Net Equity).
It can be considered a measure of profitability from the perspective of the owner or shareholder, as it includes all results, regardless of their origin.
