Earnings Statement Definition

Definition

Also called the revenue statement, the revenue announcement is a normal financial accounting record which summarizes the earnings and expenses in a specific reporting period. Performance is normally quantified concerning net profit or loss.

Explanation

An earnings announcement, together with the announcement of cash flows and balance sheet, which is just one of those 3 leading financial accounting records released by businesses. The earnings announcement provides a review of the earnings (income) and expenses (costs) incurred with a business with time. On average, statements have been published by publicly held businesses in a quarterly or yearly basis.

The announcement is usually broken to a working and non-operating section. Non-operating things usually are non-recurrent events, exceptional items or people connected with discontinued operations. Revenues and costs related to working things are of interest for creditors, investors and analysts, simply because they supply insights to the means of the enterprise to use .

Example

The table below offers a top level overview of those aspects of the revenue announcement (continuing operations).

Total Revenue 29,611,000
Cost of Goods Sold (15,693,000)
Gross Profit 13,918,000
Operating Expenses
Selling General and Administrative (7,740,000)
Operating Income or Loss 6,178,000
Income from Continuing Operations
Interest Expense (221,000)
Income Tax Expense (1,674,000)
Net Income from Continuing Operations 4,283,000