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 ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

Have you ever wondered how some individuals manage to live comfortably within their means while others struggle to make ends ...

Estimating revenue and net income for future periods is an important role of company management. The result is known as a financial projection. It tells business owners, lenders and investors whether ...

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 ...

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 ...

The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

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 ...