You don’t need to be a CPA to understand your company’s financial health. You just need to know where to look. That starts with the income statement—also known as the profit and loss (P&L) ...

Your income statement breaks down your company's profit performance into three basic sections. Each one offers insights into your ability to operate a profitable business. The income statement ...

This guide was reviewed by a Business News Daily editor to ensure it provides comprehensive and accurate information to aid your buying decision. In financial accounting — one of the most common types ...

Most organizations need to prepare budgeted income statements when setting financial goals. If you do your own accounting, you can simply fill out a budgeted income statement template in Excel. This ...

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 ...

Joseph, Director at Wise Business Plans, has overseen 15K written business plans, raising over $1Bn in funding in more than 400 industries. As you create your financial projections for your business ...

Jason Morris has 9+ years of experience as a financial professional. He is currently a controller for Nucorp, the largest steel producer in the U.S. Suzanne is a content marketer, writer, and ...

Identify total dividends from the income statement under "Retained Earnings." Divide total dividends by the number of outstanding shares. Use DPS to assess company's profitability and potential ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Katrina Ávila Munichiello is an experienced editor, ...

Common size analysis can help you see how your company is performing year over year so you can identify trends. Many, or all, of the products featured on this page are from our advertising partners ...

If there is any unfortunate thing about investing, it's that no investment can be made with perfect information. Not only are markets forward-looking, but accounting leaves a lot to be desired.