Top Income Statement Ratios: Gross, Profit, and Operating Margins Explained

Discover how to calculate and understand key income statement ratios to evaluate company performance, including gross margin, ...

How operating expenses affect profit and financial health

Reviewed by Andy Smith Fact checked by David Rubin Key Takeaways Operating expenses are essential daily business costs, separate from production expenses.Reducing operating expenses can increase ...

Accounting for Cash Purchases on an Income Statement

Discover how cash purchases impact a company's income statement and where to find detailed records in financial reports.
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Using Income Statements — These 6 Numbers Will Tell You If Your Business Is on Track

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) ...