Income statement analysis

[the_engineer]

Hello everyone.. I hope I can get someone to help me understand how to interprete an income statement.

I don't have an accounting background and I have an assignment to do regarding my masters degree. I need to analyse the financial performance of a company through its financial statements.

I've been reading through the income statement and I can't figure out how they come to the Operating Profit.

Revenue : 1720.1
COGS : (1444.4)
Gross Profit : 276.1

Administrative expense: ( 183.1)
Operating Profit : 93.0 [note 5]


Usually next to it they put a note reference. When I refer to the note 5, it writes :

Operating Profit is stated after charging/ (crediting) the following items:
Depreciation : 16.4
Amortisation of intangibles assets : 5.9
Gain on disposal of assets : (0.4)
Staff costs: 878.6

Are these values used in calculating operating profit? I've tried to play with the numbers ,adding them but i don't reach the 93.0 figure. Why are these values stated?

Can anyone help me understand that.

 

[sb05r6]

Operating Income

Operating Income is the income you have left after SG&A costs. By SGA I mean Sales, General and Administration.

This applies more to manufacturing than it does anywhere else.
Here is an example.

Revenue (Sales)
(-)Costs (Material,Labor,Depreciation,Overhead,Amortize)
(+)Credits (Allowances,Discounts)
-------------------------------
(=)Gross Profit/Gross Margin

(-)SGA Expenses (accountants,secretaries,HR, etc...)
----------------------------------
(=)Operating Profit