Data found in the balance sheet, the income statement, and the cash flow statement are used to calculate important financial ratios that provide insight into the company’s financial performance.

The income statement is a financial document that demonstrates the financial performance of a business based on its income and how this has changed over a period of time, usually 12 months.

A net income statement is important for potential investors and creditors, but it does not always show the company’s actual development. For instance, after a high, one-time asset sale ...