2. Application exercise, vertical modules

Module 2 : The PNL

The objective is to analyze the Facebook income statement (P&L) for 2017 and 2018.

Start by building the P&L.

 

For that purpose, I give you the figures out of order and you build the P&L following the two different methods: differentiating the operating expenses by destination or by their cash impact.

In the first case, you identify the gross margin, SG&A (administrative expenses and sales and marketing expenses) and R&D; in the second case, you identify the EBITDA.

 

Please note: Facebook does not pay any financial fees, because the company is not in debt, on the contrary, it generates financial income by investing its cash. You will calculate the EBITDA from the EBIT and deduct the cash operating expenses from it.