The income statement in plain English
Revenue, costs, and whether growth is turning into profit. · 7 min
Read it top to bottom
Start with revenue. Is it growing, and is the growth steady or lumpy?
Then walk down: gross profit, operating income, net income. Each step tells you where money leaks out.
Margins are the quality check
A company can grow sales and still get worse if costs grow faster. Watch gross margin and operating margin over several years, not one quarter.