Statement of Income — Example (figures in millions) Operating Revenues Net Sales $20,438 Operating Expenses Cost of goods sold $7,943 Selling, general and administrative expenses $8,172 Depreciation and amortization $960 Other expenses $138 Total operating expenses $17,213 Operating income $3,225 Nonoperating income $130 Earnings before interest and income taxes (EBIT) $3,355 Net interest expense $145 Earnings before income taxes $3,210 Income taxes $1,027 Net income $2,183 (Table info source: Bodie, Z., Kane, A. and Marcus, A. J. Essentials of Investments , McGraw Hill Irwin, 2004, p. 452.) P/E ratio ( price-to-earnings ratio ) N/A A company with no earnings has an undefined P/E ratio. By convention, companies with losses (negative earnings) are usually treated as having an undefined P/E ratio, although a negative P/E ratio can be mathematically determined. 0–10 Either the sto...