Income Statement Analysis

Income statement analysis is a field of study that determines a company's financial health by looking at publicly available information found on financial reports. Income statement analysis allows us to determine how efficient a company is as well as calculating different measures of profitability. Income statement analysis is typically thought of as an Accounting or Finance skill, but other business professionals such as managers and economists need this tool set as well.

There is nothing worse than trying to learn a new skill that you don't understand. This article is specifically designed for non-experts who have no prior experience with accounting. I will do my best to explain all of the concepts in a simple, easy to understand way while still covering all of the important information.

Topics Covered:-

• Where to find Income Statements and other Financial Statements
• Compare and Contrast Three Measures of Profitability
• Understand Key Income Statement Terms
• Calculate Price to Earnings Ratio
• Differentiate Earnings per Share vs Diluted Earnings per Share
• Derive Commonly Used Financial Ratios