income statements
Revenue and expenses
An income statement is a financial document that summarizes a company's revenues, expenses, and profits over a specific period, typically a quarter or fiscal year.
Also called a profit and loss statement, it shows whether a business made or lost money by subtracting total expenses from total revenue.
The income statement revealed that operating costs had eaten into profits.
Along with the balance sheet and cash flow statement, it forms the core trio of financial reports that investors and analysts use to evaluate a company's performance.
Earnings before operating expenses
- operating profitEarnings from core activities
- gross marginProfit from direct costs
- net marginPercentage of revenue retained
- EBITDAProfit before major deductions
earnings · bottom line · profit margin · earnings per share · EPS · retained earnings · contribution margin
Net financial results
- P&LEarnings and losses report
- balance sheetAssets-liabilities-equity report
- earnings reportStatement of company profits
- quarterly resultsFinancial report each season
annual report · accounting period · line items · fiscal year · financial reporting · footnotes
Amounts required to pay
- cost of goods soldDirect expenses for inventory sold
- overheadLocated directly above
- operating expensesRoutine business costs
- salariesFixed regular payments for work
wages · rent · utilities · depreciation · amortization · taxes · insurance · advertising
Revenue from goods moved
- top lineMost important position
- turnoverSales volume or attrition
- revenue streamsChannels generating business income
- receiptsTransaction documentation
Financial reporting conventions
- cash basisAccounting when money moves
- auditingExamining records for accuracy
- complianceAdhering to requirements
- materialityState of being consequential
disclosure · restatement · consistency · comparability · 10-K
gross profit
Earnings before operating expenses
- operating profitEarnings from core activities
- gross marginProfit from direct costs
- net marginPercentage of revenue retained
EBITDA · earnings · bottom line · profit margin · earnings per share · EPS · retained earnings · contribution margin
profit and loss
Net financial results
- P&LEarnings and losses report
- balance sheetAssets-liabilities-equity report
- earnings reportStatement of company profits
quarterly results · annual report · accounting period · line items · fiscal year · financial reporting · footnotes
costs
Amounts required to pay
- cost of goods soldDirect expenses for inventory sold
- overheadLocated directly above
- operating expensesRoutine business costs
salaries · wages · rent · utilities · depreciation · amortization · taxes · insurance · advertising · marketing
sales
Revenue from goods moved
- top lineMost important position
- turnoverSales volume or attrition
- revenue streamsChannels generating business income
receipts · inflows · revenue growth · sales volume · gains
GAAP
Financial reporting conventions
- cash basisAccounting when money moves
- auditingExamining records for accuracy
- complianceAdhering to requirements
materiality · disclosure · restatement · consistency · comparability · 10-K
- investment analysistechnical analysis, valuation, financial modeling, investment research, stock valuation
- financebank, CFO, banks, controller, finance
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- business accountingaccounts payable, accountant, accounts receivable, accounts, accrual
- investingstocks, stock, bonds, investing, investor
- bookkeeping historybookkeeping, ledgers, double-entry, balance sheets, journal entries
income, statement, incoming, incomes, statements, incomer, incomings, income statement