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Income Statement
A report of revenue, expenses, and profit over a period (quarter or year).
Income Statement
The income statement answers: Is the business profitable?
Common line items
- Revenue: Sales from products/services
- Gross profit: Revenue minus cost of goods sold
- Operating income: Profit after operating expenses
- Net income: Profit after all expenses, taxes, and interest
Tips
Look at multi-period trends (not one quarter) and compare margins to peers.
Key Takeaways
- Compare metrics over multiple periods to identify trends.
- Always consider industry context when evaluating numbers.
- Combine with other metrics for a complete picture.
Quick Reference
Category
Financials
Difficulty
Intermediate
Reading Time
1 min
Related Terms
Financial Statements
Core reports that show profitability, balance sheet strength...
Balance Sheet
A snapshot of assets, liabilities, and equity at a point in...
Cash Flow Statement
Tracks cash generated and used by operations, investing, and...
Revenue
The total sales a company earns during a period.
Net Income
Profit after all expenses, interest, and taxes.
Learn More
Where You'll See This
Look for this in the Financial Statements section on any stock detail page.