Business Basics: The Income Statement

One of the key financial statements, the income statement summarizes a company’s profit or loss from an accounting book standpoint for a specified time period, such as a calendar quarter or a full year.

In this video, AIChE Academy looks at the key elements contained in the statement, including net income and earnings per share (EPS), and explains what is meant by “book” versus cash, and defines depreciation. An actual statement from a major U.S. chemical company is examined to demonstrate the concepts. 

If you’d like to know more about tracking and assessing a company or project's financial health, you may also want to check out the AIChE Academy course Cash Flow Principles for Chemical Engineers.