There are several ways to examine how profitable a company is by using its income statement and accounting balance sheet. Most of the time, the number itself may not mean a lot unless it is compared ...

Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

When you are figuring out how well your company's doing, gross sales revenue is a poor measure. Net income, meaning the amount you have left after paying your bills, is a better measure of your ...

One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...

A company's income statement shows how much money it brought in as revenue or sales, how much it spent on expenses, and how much profit or loss -- also called net income -- was generated for a given ...

Gross income is a way of measuring the profit generated from sales alone, using just your total revenue minus the cost to you for the goods you sold. Net income, though, goes a few steps further by ...

Understanding how fast a company is growing is a critical component of any stock analysis. Selling a product or service is the most fundamental factor in the success of any business, and revenue ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...

Calculate revenue growth by comparing yearly or quarterly revenue, showing business success. Accrual accounting rules may delay cash flow despite showing revenue increases, affecting actual income.