Mei Ying Lee asked 3 years ago
Hello,
I have a few questions regarding MarketAxess' Income Statement (say for example 2022 Annual report):
- I noticed that there is no COGS expense. Does that mean revenue and gross profit is the same?
- I saw there are other expenses like employee compensation and benefits, technology and communications, professional and consulting fees, occupancy and clearing costs. However there is no space in the Financial Analysis Excel to input these expenses in the 'Income Statement' section. How do I go about approaching this?
- Is depreciation and amortization an 'exceptional item' to be removed from the net income?
1 Answers
Victor Chng Staff answered 3 years ago
Hi Mei Ying,
1. Their COGS are technology and communications. MKTX needs to invest in technology and communications to generate revenue. 2. Other than technology and communications, the rest of the expenses should be under SGA. 3. Depreciation and amortisation are not exceptional items. There are parts of the expense that spread out throughout the years.
1. Their COGS are technology and communications. MKTX needs to invest in technology and communications to generate revenue. 2. Other than technology and communications, the rest of the expenses should be under SGA. 3. Depreciation and amortisation are not exceptional items. There are parts of the expense that spread out throughout the years.
Mei Ying Lee
replied 3 years ago Ok, I understand now, thanks Victor!
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