Educational purposes only. This content does not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
Shows how much money a company made and spent over a period of time.
Why It Matters
The income statement shows if a company is making or losing money. It starts with Revenue (sales), subtracts costs and expenses, and ends with Net Income (profit). When Apple reports 'record quarterly revenue,' that's income statement news. Growing revenue with growing profits is ideal; growing revenue with shrinking profits is a red flag.
Key Points
- Key line items: Revenue → Gross Profit → Operating Income → Net Income
- Compare to previous quarters and years - is revenue growing? Are profit margins stable?
- Watch out for one-time items that can make profits look better or worse than reality
Related Terms
Common Questions
Shows how much money a company made and spent over a period of time. The income statement shows if a company is making or losing money. It starts with Revenue (sales), subtracts costs and expenses, and ends with Net Income (profit).
The income statement shows if a company is making or losing money. It starts with Revenue (sales), subtracts costs and expenses, and ends with Net Income (profit). When Apple reports 'record quarterly revenue,' that's income statement news. Growing revenue with growing profits is ideal; growing revenue with shrinking profits is a red flag.
Key line items: Revenue → Gross Profit → Operating Income → Net Income
Compare to previous quarters and years - is revenue growing? Are profit margins stable?
Watch out for one-time items that can make profits look better or worse than reality