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Understanding Affirms' Income Statement

Posted: 18 Feb 2021, 18:48
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.

Re: Understanding Affirms' Income Statement

Posted: 18 Feb 2021, 19:30
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

Re: Understanding Affirms' Income Statement

Posted: 18 Feb 2021, 22:19
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.

Re: Understanding Affirms' Income Statement

Posted: 18 Feb 2021, 22:46
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?

Re: Understanding Affirms' Income Statement

Posted: 18 Feb 2021, 23:47
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.

Re: Understanding Affirms' Income Statement

Posted: 19 Feb 2021, 17:24
by JRSB
Do they report US GAAP?

Re: Understanding Affirms' Income Statement

Posted: 19 Feb 2021, 17:57
by SamSmithFellow1
Yes, they use US GAAP