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Financial Statement Analysis

Analysing Income Statement

Earlier, a brief explanation of financial statements was provided, which consisted of three statements. In this unit, we will start off with the first one, i.e., income statements.

 

How to Analyse the Income Statement of a Company?

The Income statement is a financial document that measures a company's financial performance 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 of importance 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: - 

  • Revenue
  • Other Income
  • Expenses
  • Net Profit

We will dive through each of these components of income statements in the subsequent units. 

Master the A2Z of Finance with our beginner course! Start analyzing income statements for financial success today!

A sample Income statement of Company XYZ:

 

Click here to see the income statement of a company.

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Units 2/14