Also known as the income statement, the earnings statement is a standard financial accounting document that outlines the revenues and expenses in a given reporting period. Performance is generally measured in terms of net profit or loss.
An earnings statement, along with the statement of cash flows and balance sheet, is one of the three major financial accounting documents published by companies. The earnings statement provides a summary of the revenues (income) and expenses (costs) incurred by a company over time. Typically, statements are published by publically held companies on a quarterly or annual basis.
The statement is usually divided into an operating and non-operating section. Non-operating items are usually non-recurrent events, extraordinary items or those associated with discontinued operations. Revenues and costs associated with operating items are of interest to creditors, analysts and investors, since they provide insights into the ability of the company to operate profitably.
The table below provides a high level summary of the components of the earnings statement (continuing operations).
|Cost of Goods Sold||(15,693,000)|
|Selling General and Administrative||(7,740,000)|
|Operating Income or Loss||6,178,000|
|Income from Continuing Operations|
|Income Tax Expense||(1,674,000)|
|Net Income from Continuing Operations||4,283,000|