A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top ...

Common size analysis can help you see how your company is performing year over year so you can identify trends. Many, or all, of the products featured on this page are from our advertising partners ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...

Every business owner wants to know what the bottom line is. That all-important number is, of course, kept on the income statement. Though the income statement is simple enough on the surface, there’s ...

The traditional and contribution margin income statements both communicate a company's revenues, expenses and profits or losses for an accounting period. The top line is revenue and the bottom line is ...

Small business owners spend considerable time soliciting customers and managing employees. But the long-term objective is to make a profit and grow the company. A major responsibility of the manager ...

An income statement is your business’s bottom line: your total revenue from sales minus all of your costs. Financial data is always at the back of the business plan, but that doesn’t mean it’s any ...

You don’t need to be a CPA to understand your company’s financial health. You just need to know where to look. That starts with the income statement—also known as the profit and loss (P&L) ...

Even though the income statement normally attracts the most attention from investors, the balance sheet is the true starting point for understanding a company’s financial position. It shows how much a ...