Income Statement : A Company 's Financial Performance Essay

1190 Words Aug 17th, 2014 5 Pages
Income Statement Analysis
An income statement is a financial statement that measures a company 's financial performance over a specific accounting period. The company’s financial performance is measured by giving a summarization of how the business incurs its revenues and expenses through both operating and non-operating activities. Medtronic’s total revenue for the last three years were: $17, billion for 2014, $16.59 billion for 2013, and $16.184 billion for 2012. It’s total operating expenses for the last three years were: $8.678 billion for 2014, $7.954 billion for 2013, and $7.637 billion for 2012 (Yahoo, 2014). Income statements also show the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. They are referred to as the profit and loss statement. The earnings per share for Medtronic are $1.12 (Business Week, 2014). The income statement is divided into two portions: the operating and non-operating portion. The operating portion of the income statement is interesting to managers and investors; it reveals information concerning revenues and expenses that are a result of regular business operations. Medtronic’s total revenue has been steadily increasing in the last three years; it has increased by $821million However, the total cost of revenue increased by $1.04 billion. The non-operating section of the income statement reveals incomes and expenses that are not linked to a company’s normal business activities, such as:…

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