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Financials
Income Statement
A report of revenue, expenses, and profit over a period (quarter or year).
Income Statement
The income statement answers: Is the business profitable?
Common line items
- Revenue: Sales from products/services
- Gross profit: Revenue minus cost of goods sold
- Operating income: Profit after operating expenses
- Net income: Profit after all expenses, taxes, and interest
Tips
Look at multi-period trends (not one quarter) and compare margins to peers.