Income Statement

An income statement reveals a company's revenue, expenses, gains, and losses during a particular period. Also known as the profit and loss (P&L) statement or the statement of revenue and expense, it provides valuable insights into a company’s operations, the efficiency of its management, underperforming sectors, and its performance relative to industry peers. The income statement is one of the three important financial statements used for reporting a company’s financial performance over a specific accounting period. The other two key statements are the balance sheet and the cash flow statement.