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 […]