The income statement, also known as the profit and loss statement, is an important tool as it calculates the profitability or loss of a business. Newsletters Games Share a News Tip.

How to read an income statement . Below is the 2021 quarterly income statement from Ford's Form 10-Q. One of the first things that you will notice is that the report is using horizontal analysis.

The income statement shows how much of a profit your business made — or that you assume you will make if it’s a projection — during a specific period of time.

For each line item on this sample income statement, we've shown the percentage that it makes up of total revenue. If you just looked at numbers, it might seem like this company did better in 2022 ...

The cash-flow statement takes net income and adjusts for non-cash expenses on the profit and loss statement, as well as other cash expenditures that don't fall on the profit and loss statement, to ...