Gross Profit (income)

So, when i look at the fundamentals page of a bank like BAC, I see an gross income line.

Usually banks don’t report a gross income, so it is being calculated by P123 or S&P. How is this done? I appreciate a link to the methodology

see below
https://www.rocketfinancial.com/Financials.aspx?fID=184&p=2&pw=6030&rID=11&tID=2

and this is what we see in p123
Income Statement ($ mill.)
2012 2013 2014 2015 2016 2017 2018 TTM
Revenue 99,708 101,697 95,181 93,056 93,662 100,417 111,313 112,996
Revenue % Growth -23.25% 1.99% -6.41% -2.23% 0.65% 7.21% 10.85% 10.33%
Gross Income 74,795 85,386 81,971 79,346 80,104 84,109 88,694 88,394

Regards!

Ah, yes, fine question.

This is old information, but it shows that the modern Compustat database was merged from three distinct databases with different data models.

To get better visibility, you’d have to get a current version of the Compustat data guide, which is very close hold from these people.



Our gross profit is revenues less cost of goods.

The cost of goods is fairly straightforward in this case. We received it from CompuStat, and it’s equal to the expenses that exist above the total revenue line in the 10-K. That’s total interest expense and total non-interest expense. (I know, I know, but it looks like they’re following the general variable expenses versus fixed expenses, and for banks the fixed costs are huge: salaries, rents, and such.)

We also get the revenues line directly from CompuStat, and it’s less clear to me exactly how they’re getting it. It looks like they’re summing interest and non-interest revenues, but that would be higher than what we’re showing, so they’re adjusting something somewhere.

Anyway, that’s it: SalesA-CostGA is GrossProfitA.

Thanks Primus and Paul!