Income Statement

An Income Statement is a financial report showing how much money a company earned and spent over a specific period—usually a quarter or year. It's one of the three main financial statements you'll see when researching a stock, alongside the balance sheet and cash flow statement. Think of it like a report card for a company's profitability: it lists all revenues (money coming in), subtracts all expenses (money going out), and shows the bottom line—the profit or loss. For example, TechCorp Inc. might report $10 million in sales but $8 million in costs, leaving $2 million in profit. Investors use income statements to understand whether a company is actually making money, not just growing in size.