Net Income

A Profit and Loss statement summarizes revenue, costs, and expenses over a specific period. It reveals whether a startup is profitable or operating at a loss to inform strategy.

Retained earnings represents the cumulative profit kept in the business for reinvestment. It connects the income statement to the balance sheet and funds growth without dilution.

EBITDA measures operational profitability by stripping away financial and accounting costs. This article explains the metric, its components, and why it is not the same as cash flow.