An income statement, often referred to as a Profit & Loss (P&L) statement, is an essential financial document that details a company’s revenue and expenses over a given period of time. It provides useful insight into a company’s performance by tracking revenues, costs, profits, and losses. The income statement is typically used by investors and analysts to assess a company’s profitability, solvency and overall financial health. It can also be used to compare a company’s performance quarter over quarter or year-over-year. With the help of an income statement, investors can gain important insights into a company’s financial position and make informed decisions about their investment.