Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

When your company makes a profit, you can issue a dividend to shareholders or keep the money. The profits you keep are called retained earnings. You can use retained earnings to fund working capital, ...

The link between a balance sheet and an income statement is obvious, but it's also tricky. The more income your business earns, the more value should show up on its balance sheet. But the calculations ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...

Financial intelligence can be a hard topic to broach with business owners because they are constantly measuring their business by what is in their bank account. And although many entrepreneurs ...

Learn how to evaluate free cash flow to gauge a company's financial health and recognize accounting tricks. Understand FCF's ...

Return on investment (ROI) measures overall investment success; operating income ROI focuses on core business performance. Calculate operating income ROI by dividing operating income by total ...

Understanding cash flow statements is important because they measure whether a company generates enough cash to meet its operating expenses.

U.S. Bancorp USB reported all right second-quarter results, as expense control helped grow net income by 13% annually to $1.7 billion, with earnings per share increasing 14% to $1.11. The results ...