Net Interest Expense On 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.

Net interest expense on income statement. 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. 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. Interest expense is included on the company s income statement. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of.

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 a non operating expense shown on the income statement. It is essentially. 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.

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