In our last unit, we learned that fundamental analysis entails three primary financial statements- income statement, balance sheet & cash flow statement. So in this unit, let's begin with the income statement.
The Income Statement shows the financial performance of a firm over a specific accounting period. Financial performance is assessed by giving a revenue and expenses breakup through both operating and non-operating activities.
The income statement is a document important to managers, investors and other stakeholders alike as it contains vital information about the company. The income statement denotes whether a company has incurred profits or losses over a given time period.
The different components of an Income Statement are: -
- Other Income
- Net Profit
A sample Income statement of XYZ Company: