What financial statements are analyzed to track income performance, consolidated or individual, and over what period?

Financial Statements Analyzed For Tracking Income Performance

When analyzing income performance, there are a variety of financial statements that can be used to measure success. These include the income statement, balance sheet, and cash flow statement. Each one of these statements indicates different information about a company's finances and performance over a given period of time.

Income Statement

The income statement is a summary of a company's revenues, expenses, and profits over a particular period of time. By tracking the difference between revenues and expenses, the income statement helps track changes in income performance from one period to the next. Generally, these statements are individual reports covering one fiscal year.

Balance Sheet

The balance sheet is a snapshot of a company's assets, liabilities and net worth as of a given date. This statement provides an overview of the company's financial position and allows you to assess the amount of risk the company is taking with its investments. Generally, the balance sheet covers the past 12 months and is usually a consolidated report.

Cash Flow Statement

The cash flow statement tracks the movement of cash into and out of the company during a specified period of time. This statement helps to identify potential problems with cash flow and provides insight into the financial strength of the company. Generally, the cash flow statement covers the past 12 months and is usually a consolidated report. In summary, there are several financial statements that are used to track income performance. These include the income statement, balance sheet, and cash flow statement. These are typically individual reports covering one year for the income statement and consolidated reports covering the past 12 months for the balance sheet and cash flow statement. Understanding and analyzing these financial statements can provide valuable insights into a company's income performance for investors, shareholders, and business owners.