The income statement is one of the three critical financial statements, including the balance sheet and the cash flow and income statement, and the income statement is the profit and loss you have heard. Top and bottom line This is the bottom line.
The right to realize that there are these two main important lines in a revenue statement is that your sales at the top level are the gross revenue you get, so let’s say you got the Lemonade stand for the big money you got when you sold. It is the dollars you collect and it is the top line of your company’s revenue and then the bottom line is net income Net income is what you make.
Must be in business or not. If so, the income statement is very important which affects the first thing people look at when you look at whether a company is good and they are going to look at the income status ement then we look at this as looking at revenue growth over time and looking at net income growth over time Those two numbers are the critical numbers that come from the income statement, so what do we look at well? Each year you can see how much revenue the company has received and each year you can compare it with the next year and you should see a steady growth next year and you will find out what that number is. You can use our tool and get one investment.com for free.
I mean automatically you will now be told that you have a year to year growth rate here now you need to know your net income growth rate and you need to calculate it year by year. Now let’s call it your Apple computer. You show a growth of 20% per year. 20 percent a year Twenty percent a year Twenty percent Ten years The same thing down here with net income and what you see is that the top line grows like clockwork every year up to twenty percent and the basement grows up to twenty percent like clockwork every year .
What you want to see now is what a red flag is and a red flag is revenue growth. This way up and net earnings will fall. It will be a red flag. We want to see these things grow together.
It looks like a revenue statement when you get a big company. How important is that? Investing in a rule is really important to see what number I should use to determine the growth rate of the company as the number one stock we are currently using comes out of the balance sheet, but we want to see if it sells.
Growth Rates Income or net earnings profit growth rates are equal to the book value growth rate. We want to see if the money from operations is growing at the same rate. What you basically want to see is whether I get the same growth rate through these key numbers and at least look at the rear window of the car when you have the same growth rate and look at the history of this company.