Income Statement Explained | Revenue, COGS, Gross Profit, Operating Income, EBITDA & Net Income

In this lesson from The Finance Library, we take an in-depth look at the income statement—one of the three core financial statements used to evaluate a company's financial performance. You'll learn how an income statement differs from a balance sheet, how profits are calculated, and what each major line item tells you about a business. In this lesson: What an income statement measures Revenue vs. cash receipts (Accrual vs. Cash Accounting) Gross Sales vs. Net Sales Cost of Goods Sold (COGS) Gross Profit and Gross Margin Operating Expenses (SG&A, R&D, G&A, Depreciation & Amortization) Operating Income (EBIT) Interest Expense and Taxes Net Income (The Bottom Line) EBITDA explained and when analysts use it How to interpret profitability at different levels of the income statement Whether you're a finance student, investor, entrepreneur, or preparing for CFA®, CPA, university, or business exams, this lesson will help you understand how companies generate profits and how to analyze financial performance. 👍 If you found this video helpful, please Like, Subscribe, and turn on notifications for more in-depth finance education. #IncomeStatement #FinancialStatements #Accounting #Finance #Investing #EBITDA #CorporateFinance #FinancialAnalysis #BusinessFinance #FinanceEducation