Glossary · from the DESK dictionary
Income Statement
A financial report showing a company's revenue, expenses, and profit over a given period.
In plain words
Shows whether a company made or lost money over a period (e.g. a quarter).
Formula
Net income = Revenue − Expenses
The simplified core logic: all costs (materials, labor, interest, taxes) are subtracted from revenue to arrive at net profit.
What it means for traders
One of the three core financial statements (alongside the balance sheet and cash flow statement) in any fundamental analysis.
Common pitfalls
Vulnerable to accounting discretion (e.g. in revenue recognition) — cash flow is often considered "more honest".
Related terms
Above the Line · Accounting Period · Accounting Principles (GAAP/IFRS) · Administrative Expenses · Annual Report · Balance Sheet · Book-to-Bill Ratio · Bottom Line · Cash Flow Statement · Channel Stuffing · Cost of Goods Sold (COGS) · Discontinued Operations · Earnings Per Share (EPS) · EBITDA · Profit
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.