Orasure Technologies, Inc (All Dollars Are in Millions)

WORKSHEET Financial Literacy 1,2,3 …

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OraSure Technologies, Inc (all dollars are in millions).

Revenue is 119.72 for 2015 Subtract COG from Revenue to get Gross Income For OraSure:

119.72 (Revenue) - 39.43 (COG) = 80.29 (Gross Income) Subtract Selling, General and Administrative expenses. This is called SG&A. For 2015 OraSure is 60.58 SG&A (includes 11.65 in R&D) Operating Income is the Gross Income less the SG&A cost (with R&D) For OraSure: 80.29 (Gross Income) – 72.23 (SG&A) = 8.06 (Operating Income) 80.29 (Gross Income) – 72.23 (SG&A) = 8.06 (Operating Income) Earnings Before Interest Taxes Depreciation Amortization Other nonoperating income of .77 for total Net Income Before Taxes of 8.83 EBITDA is a measure of how the company is generating cash before financial decisions, debt practices and tax environments. Allows comparisons among similar companies of effectiveness of operations. Expressed as EBITDA Margins = 8.06/119.72 is 6.7%

Now we subtract Depreciation: (allocating the cost of a tangible asset over its useful life) 8.83 (Operating Income) - 0 (Depreciation) = 8.83 (EBIT) Earnings Before Interest and Taxes “Operating Earnings” Note: Amortization is allocating cost of non-tangible assets usually over 15 years. Items such as IP, Patents, Copyrights, Startup Cost OraSure has no interest payments 8.83 (EBIT) - (Interest) = 8.83 Net Income Before Taxes Provisions for Taxes is .67 Net Income Before Taxes less .67 is 8.17 Net After Tax Income 2014 was – 4.61 2013 was – 11.19

The BIG Three • Income Statement – indicates the cumulative financial results of operations over a specific period – also referred to as the profit-and-loss statement, or P&L • Balance Sheet – statement that describes the assets owned by the business and how those assets are financed – with funds of creditors (liabilities), the equity of the owners, or both. • Cash Flow Statement – details the reasons for changes in cash during the accounting period – all changes in cash relating to operating activities, investments, and financing.