Owens Corning (OC) Financials

The income statement for Owens Corning (OC) provides a snapshot of the company's financial performance over a specific period. It outlines the revenues generated, expenses incurred, and ultimately the net income earned by the company during that period. By analyzing the income statement, stakeholders can gain insights into the company's profitability and assess its ability to generate profits.

EBIT, or earnings before interest and taxes, is a measure of a company's operating profitability. It represents the company's earnings before deducting interest expenses and income taxes. EBIT can help investors evaluate a company's operating performance independent of its financing and tax decisions.

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's operating performance that eliminates the impact of non-cash expenses such as depreciation and amortization. It provides a clearer view of a company's cash generation ability. Investors often use EBITDA to compare companies in the same industry.

Gross profit is the difference between a company's total revenues and the cost of goods sold (COGS). It reflects the profitability of the company's core operations before accounting for other expenses such as operating expenses, interest, and taxes. Gross profit margin, which is calculated by dividing gross profit by total revenues, indicates how efficiently a company manages its production costs.

Net income from stockholders, also known as net income attributable to common stockholders, represents the earnings available to common shareholders after deducting preferred dividends. It is an essential metric for evaluating a company's profitability and determining the amount of profit that can be distributed to shareholders.

Total revenue is the sum of a company's sales from its primary business activities. It reflects the overall performance of the company and measures its ability to generate income. Increasing total revenue over time is generally a positive sign, indicating growth and success in the company's operations.

The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It presents the company's assets, liabilities, and stockholders' equity. By examining the balance sheet, investors can assess a company's liquidity, solvency, and overall financial health.

Cash equivalents are highly liquid assets that can be readily converted into cash. They typically include short-term investments with maturities of three months or less. Companies hold cash equivalents to ensure they have sufficient funds to meet short-term obligations and take advantage of investment opportunities.

Net debt is calculated by subtracting a company's cash and cash equivalents from its total debt. It provides a more accurate picture of a company's indebtedness, as it takes into account its available cash resources. Net debt is an important metric for assessing a company's financial leverage and its ability to repay its debts.

Stockholders' equity, also known as shareholders' equity, represents the residual interest in the assets of a company after deducting its liabilities. It reflects the amount of capital invested by shareholders and the accumulated profits or losses generated over time. Stockholders' equity serves as a measure of a company's net worth and financial stability.

Total assets represent the resources owned by a company, including cash, investments, property, plants, equipment, and intellectual property. They are recorded on the balance sheet and provide insight into the value of a company's operations. Investors analyze total assets to assess a company's size, growth potential, and risk profile.

Total debt represents the total amount of a company's financial obligations. It includes both short-term and long-term debt, such as bank loans, bonds, and other borrowings. Monitoring a company's total debt is important for investors as it indicates the level of financial risk and the company's ability to meet its obligations.

Total liabilities are the financial obligations owed by a company to its creditors, suppliers, and other entities. They include both current liabilities (due within one year) and long-term liabilities. Total liabilities provide insights into a company's financial health and its ability to repay debts. Investors compare total liabilities to total assets and equity to assess the company's solvency.

Cash flow refers to the movement of cash into and out of a company over a specific period. It can be categorized into three main activities: operating, investing, and financing. Operating cash flow represents the cash generated from a company's core operations, while investing cash flow relates to cash flows from investments in property, plant, and equipment, as well as acquisitions or divestments. Financing cash flow reflects cash flows from activities related to raising and repaying capital, such as issuing bonds or paying dividends.

Financing cash flow represents the inflows and outflows of cash related to a company's financing activities. It includes activities such as issuing or repurchasing stock, issuing or repaying debt, and paying dividends. Analyzing financing cash flow provides insight into how a company funds its operations and invests in growth opportunities.

Free cash flow is a measure of a company's cash generation that is available to be distributed to investors, reinvested in the business, or used to pay down debt. It is calculated by subtracting capital expenditures from operating cash flow. Free cash flow is an important metric for investors as it indicates a company's ability to generate cash and its financial flexibility.

Investing cash flow represents the inflows and outflows of cash related to a company's investment activities. It includes cash flows from buying or selling property, plant, and equipment, acquiring or divesting businesses, and making investments in securities. Analyzing investing cash flow provides insights into a company's investment strategies and its ability to generate returns.

Operating cash flow represents the cash generated or used in a company's core business operations. It reflects the cash flows from its primary revenue-generating activities and excludes cash flows from investing and financing activities. Operating cash flow is a fundamental measure of a company's financial health and its ability to fund its operations and expansion initiatives.