investing guide

How Do You Read Income Statements Related To The Stock Market

income statements

So how do you read income statements related to the stock market?

Income statements are the backbone of fundamental analysis when it comes to figuring out if a company is making money.

These statements will contain information such as sales, expenses, and earnings of any particular company. Many investors will look for company's whose revenues are increasing by 15 percent or more each year.

Unfortunately, the average investor probably does not have the time or the patience to actually go through and review a company's income statement. After all, looking at a bunch of numbers on a spreadsheet is not the most interesting aspect of investing.

Therefore, many investors rely on financial resources to give them the breakdown of a company's income statement.