By Leanna Kelly Alongside the balance sheet and the cash flow statement, the income statement is one of the “big three” financial reporting documents every public company needs to produce each quarter. It’s a summary of a company’s performance, determined by the organization’s profitability over a period of time. It’s also known as the profit and loss (P/L) statement or the earning statement.
This document provides context for investors and stakeholders as to how efficiently the company is managing its revenues and expenses. It’s also a great evaluator for performance over time. Savvy investors can learn a lot about the management of a …read more
