tbone51 said:
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*sigh*
Overall Nintendo made a small/insignificant profit for the quarter(~$6.2mil) while Sony lost an another $200 mil for the quarter!!!
In addition:
Operating Income
So what should you look for in the income statement other than the net income? You should consider the operating income as the better indicator of your company's earning power. The operating income is the income that the company realizes from its core business before other items are accounted, as computed below:
Sales – Cost of Sales = Gross Profit – Operating Expenses = Operating Income
Using the operating income margin as an indicator--computed by simply dividing operating income by total sales--will allow you to measure management’s efficiency in running the business. The higher the margin, the more efficient--this means that operating expenses are consciously guarded as sales grow.
The operating income margin also helps you to compare your position against your competitors in the same industry. For example, if you are in the food business, you may compare your margins with the industry average of 25 percent.
Net Income
While operating income captures only items that directly affect the core business operation, the net income captures everything. As an indicator, net income margin will not allow you to accurately compare your business with your competitors, since you may have different capital structures.
For example, you may be financing your business by borrowing money from the bank, while your competitor might be using its own money. Your net income would then be lower than your competitor’s because you are paying interest expense while your competitor has no such expense. Your net income margin will therefore differ greatly, making such comparison difficult. From operating income, the net income is computed as follows:
Operating Income + Other Income – Other Expenses = Pretax Income – Income Tax = Net Income
http://www.businesssense.com.ph/operating_income_vs_net_income
http://www.marketwatch.com/story/sony-cuts-full-year-outlook-quarterly-loss-widens-2013-10-31
http://news.cnet.com/8301-10797_3-57609971-235/nintendo-ekes-out-a-small-profit-despite-wii-us-drag/
hope this helps?