Comprehensive Income

Comprehensive Income

See Also:
Accounting Income vs. Economic Income
Accounting Income Definition
Economic Income
Income Statement
Net Income
Debt Restructuring
Maximizing Your Bottom Line In 3 Simple Steps
Net Profit Margin Analysis

Define Comprehensive Income

Define Comprehensive Income as the overall change in wealth for a company during a period. This includes not only the growth through income and size but also reflects equity changes among the firm as well as market conditions that arise. All of this information is generally summarized on the comprehensive income statement.


This type of accounting was established to try and gauge a company better because it is left out of the calculation of net income. This was done because the items in comprehensive income do little to gauge the economic performance of the company. However, this type of income and net income differ in that the comprehensive income effects the assets and liabilities that are reported on the balance sheet.

Comprehensive Income Formula

Use the following comprehensive income formula:

Gross Profit Margin (RevenueCOGS)
Operating Expenses
(+/-) Other Income items
(+/-) Discontinued Operations (add if savings, subtract if loss)
Comprehensive Income

Comprehensive Income Example

For example, Casa entertainment is a company that provides VHS, DVD, TVs, as well as speaker system products to it’s customers. The company invest in securities on the side. They recently discontinued its VHS operation due to the fact that it has become unprofitable. Finally, the company asked Annie an accountant to calculate the comprehensive income given the following information for Casa Entertainment:

Gross Profit = $20 million
Operating expenses = $5 million
Other Income (Profit in Security Investments)= $2 million
Discontinued Operations (Savings from disposal of VHS operations) = $1 million

Thus using this equation above comes out to $18 million dollars.
If you want to learn how to price profitably, then click here to download the free Pricing for Profit Inspection Guide.
comprehensive income
[box]Strategic CFO Lab Member Extra
Access your Strategic Pricing Model Execution Plan in SCFO Lab. The step-by-step plan to set your prices to maximize profits.

Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs[/box]

comprehensive income


Financial Ratios

See also: Quick Ratio Analysis Price to Book Value Analysis Price Earnings Growth Ratio Analysis Time Interest Earned Ratio Analysis Use of Financial Ratios Financial Ratios are used to measure financial performance against standards. Analysts compare financial ratios to industry averages (benchmarking), industry standards or rules of thumbs and against internal trends (trends analysis). The

Read More »

Margin vs Markup

See Also: Gross Profit Margin Analysis Retail Markup Chart of Accounts (COA) Margin Percentage Calculation Markup Percentage Calculation Margin vs Markup Differences Is there a difference between margin vs markup? Absolutely. More and more in today’s environment, these two terms are being used interchangeably to mean gross margin, but that misunderstanding may be the menace

Read More »

Markup Percentage Calculation

See Also: Margin vs Markup Margin Percentage Calculation Retail Markup Gross Profit Margin Ratio Analysis Operating Profit Margin Ratio Analysis Markup Percentage Definition Define the markup percentage as the increase on the cost price. The markup sales are expressed as a percentage increase as to try and ensure that a company can receive the proper

Read More »


Financial Leadership Workshop

MARCH 28TH-31ST 2022

Share on facebook
Share on twitter
Share on linkedin


Strategic CFO™ Financial Leadership Workshop
The Art of the CFO®


June 13th - 16th 2022