Inventory income statement is a valuable tool for gauging the performance of your business. It shows how much money has been earned by selling products and services, and then subtracting the cost of goods sold. This enables businesses to gain insights into their sales patterns, and optimize their inventory stocking and turnover cycle. With an accurate reading of inventory income statement, businesses can make informed decisions on pricing, marketing, product mix and more — leading to greater profits and success in the long-run.