Understanding Affirms' Income Statement

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SamSmithFellow1
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Joined: 18 Feb 2021, 18:45

Understanding Affirms' Income Statement

Post by SamSmithFellow1 »

Hello,
I am trying to understand Affirm's income statement (https://finance.yahoo.com/quote/AFRM/financials?p=AFRM). Looking at the TTM column, can someone please help me understand what the "Interest Income Non Operating" (shown as $170,934) is for?

Thank you in advance.
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Marek Muc
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Re: Understanding Affirms' Income Statement

Post by Marek Muc »

it's probably interest that they earn when investing their excess cash, e.g. in bonds
you can browse through their financial statements, there should be more info in explanatory notes
SamSmithFellow1
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Re: Understanding Affirms' Income Statement

Post by SamSmithFellow1 »

Thanks Marek. Could this interest income come from both the "Cash" they had and the "Debt" they have on their Balance Sheet? Becuase when I look at just their Cash , this level of "Interest from Non Operating" source looks very high.
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Marek Muc
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Re: Understanding Affirms' Income Statement

Post by Marek Muc »

Debt is usually used to describe financial liabilities so it brings interest expense rather than interest income. Look for investments and remember that they clould have held them during the year and sold before the balance sheet date. Did you look at their financial statements?
SamSmithFellow1
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Re: Understanding Affirms' Income Statement

Post by SamSmithFellow1 »

Looks like Affirm's Income Statement is contructed differently than other Personal Loan lenders. LendingClub's Income Statement is very self-explainatory.
https://finance.yahoo.com/quote/LC/financials?p=LC

Thanks.
JRSB
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Re: Understanding Affirms' Income Statement

Post by JRSB »

Do they report US GAAP?
SamSmithFellow1
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Re: Understanding Affirms' Income Statement

Post by SamSmithFellow1 »

Yes, they use US GAAP
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