Understanding an Income Statement (Estado de Resultados)

An income statement summarizes a company’s revenues (ingresos), expenses (gastos), and profit or loss (ganancias o pérdidas) over a specific period.

---

1. Revenues (Ingresos)

This section shows the total amount of money a company earns from its core business activities.

• Automotive sales – Ventas de automóviles
• Automotive regulatory credits – Créditos regulatorios automotrices
• Automotive leasing – Arrendamiento de automóviles
• Energy generation and storage – Generación y almacenamiento de energía
• Services and other – Servicios y otros

🔹 Total Revenues (Ingresos Totales) – Sum of all revenue streams.

---

2. Cost of Revenues (Costo de Ingresos)

This represents the cost of producing or delivering goods and services.

• Automotive sales cost – Costo de ventas de automóviles
• Automotive leasing cost – Costo de arrendamiento de automóviles
• Energy generation and storage cost – Costo de generación y almacenamiento de energía
• Services and other cost – Costo de servicios y otros

🔹 Total Cost of Revenues (Costo total de ingresos) – Total cost to produce the products/services.

---

3. Gross Profit (Ganancia Bruta)

Formula:Gross Profit=Total Revenues−Total Cost of Revenues\text{Gross Profit} = \text{Total Revenues} – \text{Total Cost of Revenues}Gross Profit=Total Revenues−Total Cost of Revenues

It represents how much money is left after covering the cost of producing the goods or services.

---

4. Operating Expenses (Gastos Operativos)

These are costs related to running the business that are not directly tied to production.

• Research and development (R&D) – Investigación y desarrollo (I+D)
• Selling, general, and administrative (SG&A) – Gastos de ventas, generales y administrativos
• Restructuring and other – Reestructuración y otros

🔹 Total Operating Expenses (Gastos Operativos Totales) – Total costs related to operating the business.

---

5. Income from Operations (Ingreso de Operaciones)

Formula:Income from Operations=Gross Profit−Operating Expenses\text{Income from Operations} = \text{Gross Profit} – \text{Operating Expenses}Income from Operations=Gross Profit−Operating Expenses

This shows how profitable the company is from its main business activities before other income and expenses.

---

6. Other Income and Expenses (Otros Ingresos y Gastos)

• Interest income – Ingresos por intereses (Money earned from investments)
• Interest expense – Gastos por intereses (Cost of borrowed money)
• Other income (expense), net – Otros ingresos (gastos), netos (Miscellaneous income or expenses)

---

7. Income Before Income Taxes (Ingreso Antes de Impuestos)

Formula:Income Before Taxes=Income from Operations+Other Income−Other Expenses\text{Income Before Taxes} = \text{Income from Operations} + \text{Other Income} – \text{Other Expenses}Income Before Taxes=Income from Operations+Other Income−Other Expenses

Represents how much profit is left before the company pays taxes.

---

8. Provision for Income Taxes (Provisión para Impuestos)

• Amount set aside to pay taxes on income.

🔹 Net Income (Ingreso Neto o Beneficio Neto)
Formula:Net Income=Income Before Taxes−Provision for Taxes\text{Net Income} = \text{Income Before Taxes} – \text{Provision for Taxes}Net Income=Income Before Taxes−Provision for Taxes

This is the final profit a company earns after all costs and taxes.

---

9. Net Income Attributable to Stockholders (Ingreso Neto Atribuible a Accionistas)

This is the portion of the net income that belongs to the company’s shareholders (accionistas) after deducting any minority interest (participación minoritaria).

---

Final Summary

• Revenues (Ingresos): Money earned from sales.
• Cost of Revenues (Costo de Ingresos): Money spent producing goods/services.
• Gross Profit (Ganancia Bruta): Revenue minus cost of revenues.
• Operating Expenses (Gastos Operativos): Business running costs.
• Income from Operations (Ingreso de Operaciones): Profit before non-operating income/expenses.
• Income Before Taxes (Ingreso Antes de Impuestos): Profit before tax.
• Net Income (Ingreso Neto): Final profit after all expenses and taxes.