A company’s long-term success hinges on its financial health. In a competitive market, stable companies may come out on top while unstable companies can struggle to survive. One of the clearest ways ...

The traditional and contribution margin income statements both communicate a company's revenues, expenses and profits or losses for an accounting period. The top line is revenue and the bottom line is ...

What Is the Income (Profit and Loss) Statement? A company's income statement details its revenue and expenses to demonstrate profitability for a period. For publicly traded companies, the income ...

Learn how to read an income statement! This beginner's guide breaks down revenue, cost of revenue, gross profit, operating ...

Most organizations need to prepare budgeted income statements when setting financial goals. If you do your own accounting, you can simply fill out a budgeted income statement template in Excel. This ...

A company's income statement shows how much money it brought in as revenue or sales, how much it spent on expenses, and how much profit or loss -- also called net income -- was generated for a given ...

A balance sheet provides a snapshot of a company's assets, liabilities and equity at a specific point in time, while an income statement summarizes its revenues and expenses over a period to show ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Operating income measures a company’s efficiency and performance and is the profit after operating expenses have been subtracted from gross profit. Before delving further into operating income, it’s ...

Traditional and contribution margin income statements provide a detailed picture of a company's finances for a given period of time. While both serve the purpose of showing whether a company has a net ...