How to read the income statement

The income statement, also known as the income statement, is relatively simple. It explains how much money a company has earned and spent in a certain period (usually an accounting interval, such as quarterly, semi-annual and annual). Income MINUS expenses is profit: profit = income-expenses (expenses are usually divided into costs and expenses according to types).

If the income exceeds the expenditure, then the profit is positive and the company is profitable. On the contrary, if the expenditure is greater than the income and the profit is negative, the company is losing money.

Revenue is usually obtained by the company selling products or services, but the expenditure items are different according to the business types of different companies. The income statement is a report that summarizes all these revenues and expenses according to different types.

Since listed companies are owned by all shareholders, it is an important concept in the income statement to allocate the total profit to each share and get the earnings per share (or profit per share).

If you are not optimistic and don't understand, you can find a professional to help you judge and analyze.