# Understanding the income statement - Verizon's net income

I'm trying to figure out how Verizon has calculated their net income, I believe it should be: net income=total revenue - total costs

However, when I look at Verizon's 2020 income statement from Yahoo finance, it's not clear how they calculate net income, even if I add taxes to total expenses and subtract it from the total revenue, I still don't get the same figure for net income (17,801). I'm struggling to work out which numbers are being used in their calculations (admittedly I'm relatively new to income statement analysis).

• Could you add some links to Yahoo Finance and add some concrete numbers? (e.g. Yahoo Finance shows \$X, while you have calculated \$Y).
– Flux
Commented Sep 4, 2021 at 8:38

Using the numbers from yahoo finance I break it up into chunks:

``````Total Revenue:                       128,292,000
Removing the cost of revenue:         51,201,000
Leaving you with a Gross profit of    77,091,000

From that number you have the operating expense of 48,293,000
Leaving an operating income of 28,798,000

From that number you have

Net Non Operating Interest Income Expense  -4,182,000
Other Income Expense -649,000
Leaving you with a Pretax Income of 23,967,000

From that take the Tax provision of 5,619,000
Leaving you with a  Net Income Common Stockholders of 17,801,000
``````

You confusion was that you had extra rows that explained some other rows.

• Thank you mhoran_psrep. That really helps. One of the things which threw me is seeing the negative expenses such as "Other Income Expense" being negative (-649,000). My mind was struggling with the fact that expenses generally cost you, but being negative then should I be subtracting 649000 or adding it back?
– Jay
Commented Sep 5, 2021 at 20:34