The income statement analysis reveals the structure of the company's revenues and expenses, which allows them to be controlled in terms of items, types (areas) of an activity, product groups, and managers. Thus, the income statement definition is very simple.
Income statement simple definition
Based on the analysis obtained in the context of various analysts, it is possible to prepare corrective measures to modify the pro forma income statement. For example, you can conclude the feasibility of developing or discontinuing any business lines, changing the product line or implementing KPI. Key Performance Indicators – a key indicator of performance results, the degree of achievement, and the cost of getting results for managers and departments.