An income statement, also known as a profit and loss statement (P&L), is a financial report that summarizes a company's revenues, expenses, gains, and losses over a specific period, typically a quarter or fiscal year. The income statement provides a snapshot of the company's financial performance by detailing its ability to generate revenue, manage expenses, and generate profit or incur losses. Key components of the income statement include revenues from sales, cost of goods sold (COGS), gross profit, operating expenses, net income before taxes, and net income after taxes. Investors, analysts, and stakeholders use income statements to assess a company's profitability, operational efficiency, revenue growth, and overall financial health. Comparing income statements over time or against industry peers helps identify trends, evaluate performance, and make informed investment or business decisions.