Joe Lan, CFA is a financial analyst at AAII.


robert j albers from il posted over 2 years ago:

Could you include material on how income statements can vary under the new effort to internationalize reporting standards, or perhaps how income statements currently vary under various international standards? Most of the largest companies in the world are not domestic in origin nowadays.

Robert Albers

Lee from NC posted over 2 years ago:

This is way too complicated for a person investing in securities. This is what you learn in Accounting 102. A quick summary would be helpful, but this is just too much. As usual, it's an over-kill.

Chris from NE posted over 2 years ago:

I've been studying income statements as an investor for almost 20 years and as a small businessman for over 10 years now, but this article's clear and understandable review of the different parts, highlighting the important areas, really improved my ability to find the important messages income statements should convey. Good job.

David from IL posted over 2 years ago:

I would call this a good basic description of how to read an income statement. Without this you don't understand the meanings of the various line items. I run into misunderstandings all the time in my business, where people who are not accountants but business guys do not understand these basics. It is not accounting 102.

William from AZ posted over 2 years ago:

It would be useful to compare the income statement with the cash flow statement.

David from AL posted over 2 years ago:

This is an excellent resource and meets Einstein's admonition to "make things as simple as possible but no simpler". I plan to use this to teach my 16 year old grandson how to read financial statements this summer. I will add it to the Introduction article and look forward to the one on balance sheets. Thank you for a fine job.

Rao from OH posted over 2 years ago:

I have enjoyed this simple and easy method of analyzing parts of income statement.It is very helpful for an individual investors like me.

Richard Dugbo from KS posted about 1 year ago:

What an incredible job. It highlights the major components to "zoom in" when analyzing the income statement.

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