Net Interest Expense Income Statement

Net interest expense is the total interest net of any interest income that a company receives on investments.

Net interest expense income statement. In regard to banks net interest income should go up as the yield curve steepens long term rates rise faster than short term rates because the bank is able to pay depositors a relatively low rate but it can charge its borrowers a higher rate. This line aggregates interest expense interest income and other non operating expenses as we can see in apple s 10k footnotes. For example if a company paid 1 million to its creditors but 200 000 went toward the principal the interest expense is 800 000. Interest expense is one of the core expenses found in the income statement income statement the income statement is one of a company s core financial statements that shows their profit and loss over a period of time.

Find out the revenue expenses and profit or loss over the last fiscal year. It is essentially. Net non operating interest income. It is reported within the interest income account in the general ledger.

Interest expense is a non operating expense shown on the income statement. On a financial statement the income can be listed separately from expenses or provide a net interest number which is either positive or negative. In other words if a company paid 20 in interest on its debts and earned 5 in interest from its savings account the income statement would only show interest expense net of 15. It is a line item and is generally recorded separately from interest expense in the income statement.

Net interest income can be positive or negative and it is listed on the income statement. The positive inter annual trends in all the income statement components both income and expense have lifted the company s profit margins net income net sales from 40 to 44 again that s. Get the detailed quarterly annual income statement for vodafone group plc vod. Interest expense is included on the company s income statement.

It represents interest payable on any borrowings bonds loans convertible debt or lines of credit. Some companies prefer to mention this type of income as penalty income. For example notice that apple s 2016 income statement above contains a line called other income expense net of 1 348 million.