Company reports

Income Statement

The financial statement that shows a company's revenue, costs and profit over a period, such as a year or a quarter.

Why does it matter?

It answers the question: did the business make money?

How do I read it?

Read it from top to bottom: revenue, then costs step by step, then operating income and, at the end, net income. Revenue, net income and the margins on StockLab come from it.

Example

Revenue of $100 million minus $60 million of cost of sales leaves $40 million of gross profit. Minus $25 million of other operating costs leaves $15 million of operating income. Minus $5 million of interest and taxes leaves $10 million of net income.