Total Expense

Explanation: In the income statement, “Total Expense” includes various components such as raw material cost, employee cost, power fuel cost, manufacturing expenses, selling, general, and administrative (SGA) expenses, selling and distribution expenses, as well as other expenses. It represents the total amount of money spent by the company on its operational and administrative activities during a specific financial period.

Example: In FY 2023, Maruti Suzuki had a total expense of 106,554 crore rupees. This figure encompasses all costs incurred by Maruti Suzuki across its operations, including expenses related to raw materials, employee salaries and benefits, power and fuel consumption, manufacturing overheads, SGA expenses, selling and distribution costs, as well as other miscellaneous expenses.

Total expenses are a critical component of the income statement as they directly impact the company’s profitability and financial performance. By analyzing total expenses, investors, analysts, and stakeholders can gain insights into the company’s cost structure, operational efficiency, and overall management effectiveness. It helps in evaluating the company’s ability to control costs, generate profits, and sustain long-term growth.

You can view the quarterly and annual Total Expense for any company on Radar in the Quarterly Results and Yearly P/L sections.