Income Statement

An income statement is a financial report that shows how much money a company made and spent over a specific period, ending with its profit or loss. You'll find this in a company's quarterly or annual reports, and it's one of the three main financial statements investors use to evaluate whether a business is actually making money. Think of it like your personal bank statement, but for a company: it lists all revenue (money coming in), operating expenses (costs to run the business), and taxes, then shows the bottom line—the profit or loss. For example, TechCorp Inc. might report $10 million in revenue, $6 million in expenses, leaving $4 million in profit. This tells you whether the company is genuinely profitable or just burning cash.