Income Statement
Definition
Income Statement: An income statement (P&L) shows a company's financial performance over a period—revenue, costs, and resulting profit or loss. It tracks whether the business makes money operationally. Key sections: revenue, cost of goods sold, gross profit, operating expenses, and net income.
Example Usage
“Our P&L shows $1M revenue, $300K COGS, $700K gross profit, $900K opex, and ($200K) net loss. We're investing in growth.”
Common Misconceptions
Related Terms
Balance Sheet
A balance sheet shows a company's financial position at a point in time—listing assets (what you own), liabilities (what you owe), and equity (owner v...
Cash Flow Statement
A cash flow statement shows how cash moves in and out of a business over a period. It has three sections: operating (core business), investing (assets...
Gross Margin
Gross margin is revenue minus the cost of goods sold (COGS), expressed as a percentage of revenue. For SaaS companies, COGS typically includes hosting...
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