The income statement

Performance over a period.

Reading down

Revenue, cost of sales, gross profit, operating expenses, operating profit, interest, tax, net profit. Each level answers a different question about where money goes.

Gross margin shows whether the core activity works.
Operating profit strips out financing and tax, which makes companies comparable.

Watch the adjustments

Adjusted figures exclude items management considers unusual. Compare them with the statutory number and ask what was removed and why, every year.