What does an income statement show?

An income statement provides a detailed account of a company's revenues and expenses over a specific period, typically a fiscal quarter or year. This financial statement illustrates how much money the company earned through its normal business operations and how much it spent on various costs, including operating expenses, interest, taxes, and other expenditures. The bottom line of the income statement reflects the net income or loss, which is a critical indicator of a company's financial performance during that period. Investors, stakeholders, and management use this information to assess profitability, operational efficiency, and overall financial health, allowing for informed decision-making about the company's future.