Income statement:
An income statement is a report that shows how much revenue a company earned over a specific time period (usually for a year or some portion of a year). An income statement also shows the cost and expenses associated with earning that revenue. The literal “bottom line: of the statement usually shows the company’s net earnings or losses. This tells you how much the company earned or lost over the period.
Income statement also report earnings per share (or EPS). This calculation tells you how much money shareholders would receive if the company decided to distribute all of the net earnings for the period. (Companies almost never distribute all of their earnings. Usually they reinvest them for the period. (Companies almost never distribute all of their earnings. Usually they reinvest them in the business.)
Earnings per Share or EPS
Most income statements include a calculation of earnings per share or EPS. This calculation tells you how much money shareholders would receive for each share of stock they own if the company distributed all of its net income for the period.
To calculate EPS, you take the total net income and divide it by the number of outstanding share of the company.
