{"ok":true,"canonical_url":"https://dealroom.so/glossary/income-statement","api_url":"https://dealroom.so/api/public/glossary/income-statement","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"income-statement","term":"Income statement","group":"Reading the business","definition":"This financial document summarizes a company's revenues, expenses, and profits or losses over a period, like a quarter or year. It's essential for understanding a business's historical profitability.","what_it_means":"When evaluating a business, you'll analyze its Income Statements (also called Profit and Loss Statements) for the past three to five years. Look for consistent revenue, manageable expenses, and stable profit margins. This helps you project future cash flow and determine the business's true earning power, especially after considering add-backs for owner compensation.","url":"https://dealroom.so/glossary/income-statement","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"}],"related_questions":[{"question":"What if my personal financial statement shows low liquid assets?","url":"https://dealroom.so/sba-loans/basics/what-if-my-personal-financial-statement-shows-low-liquid-assets"},{"question":"How important is my personal financial statement for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-important-is-my-personal-financial-statement-for-an-sba-7-a-loan-application"},{"question":"What if the acquired business primarily generates revenue from passive rental income?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-primarily-generates-revenue-from-passive-rental-income"},{"question":"What constitutes \"passive income\" disqualifying a business from 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-passive-income-disqualifying-a-business-from-7-a-loan-eligibility"},{"question":"When is an SBA Form 912 (Statement of Personal History) required for a non-owner guarantor?","url":"https://dealroom.so/for-lenders/questions/when-is-an-sba-form-912-statement-of-personal-history-required-for-a-non-owner-guarantor"},{"question":"When is SBA Form 912, Statement of Personal History, specifically required for 7(a) loan applicants?","url":"https://dealroom.so/for-lenders/questions/when-is-sba-form-912-statement-of-personal-history-specifically-required-for-7-a-loan-appl"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Income statement","url":"https://dealroom.so/glossary/income-statement","source_type":"DealRoom Data"}}