Master income statement analysis—discover its components, read financial health indicators, and make informed financial decisions. Your guide to assessing business performance.

The income statement is one of the financial statements which we as investors, managers, operators, and employees should all understand. Without a profitable business, we wouldn’t be in business at ...

You don’t need to be a CPA to understand your company’s financial health. You just need to know where to look. That starts with the income statement—also known as the profit and loss (P&L) ...

As a business owner monitoring the financial health of your business is an essential task. You need to understand the financial position of your company and how you can improve it. The income ...

Understanding Gross Income and Net Income Differences ... Net income is the bottom line on an income statement. Net income, or net earnings, is the bottom line on a company’s income statement. It’s ...

Vipul Bansal is a seasoned finance professional with over ten years of experience in investment banking and capital markets. Deutsche Bank. Financial statements play a crucial role in evaluating a ...

Understanding how the income statement affects the balance sheet is not that difficult. The two concepts fit together like pieces of a dynamic puzzle. In this case, the puzzle is the financial ...

An income statement differs from a budget on various fronts, and understanding these distinctions can help you make sense of concepts such as profitability, liquidity management and solvency. The last ...

QUESTION: I recently hired an accountant to do the books for my small business. Each month she gives me an income statement, but I don’t understand what it is trying to tell me. Can you help me ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...

Cash flow provides important context to information that might not be apparent on other financial statements like a balance sheet or income statement. If a business makes a sale to a customer, that ...