How to Read an Income Statement (P&L)

An Income Statement (or Profit & Loss statement) summarizes a company's revenues, expenses, and profits over a specific period, usually a quarter or a fiscal year.

Key Components

• Revenue (Top-line): The total amount of money the company brought in from sales of products or services.
• Operating Margin (EBITDA): Earnings before interest, taxes, depreciation, and amortization, showing core operating profitability.
• Net Profit (Bottom-line): The clear profit remaining after all operating expenses, interest, depreciation, and corporate taxes are paid.