what insights should you look for in an income statement 
the income and expense components can help an investor learn what makes a company profitable or not competitors can use them to measure how their company compares on various measures research analysts use them to compare performance year on year and quarter on quarter the bottom linean income statement provides valuable insights into various aspects of a business it includes readings on a company s operations the efficiency of its management the possible leaky areas that may be eroding profits and whether the company is performing in line with industry peers 