Enter this period's and last period's income statement figures to instantly see margins, year-over-year growth, and a common-size percentage breakdown.
| Line item | Prior period | Current period |
|---|---|---|
| Revenue | ||
| Cost of goods sold (COGS) | ||
| Operating expenses | ||
| Interest expense | ||
| Taxes |
| Metric | Prior period | Current period | YoY change |
|---|
How to use the income statement analyzer
- Enter revenue, COGS, operating expenses, interest expense, and taxes for the prior period.
- Enter the same line items for the current period.
- Click Analyze Income Statement to see gross, operating, and net profit, their margins as a percentage of revenue, and year-over-year growth for each.
Why margin trends matter more than a single period's numbers
Revenue growth alone doesn't tell you whether a business is becoming more or less efficient. If costs grow faster than revenue, margins compress even while the top line looks healthy. Comparing two periods side by side surfaces that pattern immediately, showing whether profitability is improving, holding steady, or eroding as the business scales.
Example
Revenue growing from 800,000 to 900,000 (12.5% growth) while COGS grows from 480,000 to 540,000 (also 12.5%) keeps gross margin flat at 40%. If COGS instead grew to 580,000, gross margin would compress from 40% to about 35.6%, a warning sign worth investigating even with strong revenue growth.
Frequently asked questions
- What is a common-size income statement?
- One where every line is shown as a percentage of revenue, useful for comparing cost structure across periods or companies.
- What's the difference between gross margin, operating margin, and net margin?
- Gross margin subtracts only COGS, operating margin also subtracts operating expenses, net margin subtracts everything including interest and tax.
- Why compare two periods instead of just one?
- A single period shows current state, two periods reveal direction and trend.
- Does this tool store or send my financial figures anywhere?
- No, all calculations happen locally in your browser.
Bookmark this page and run it every reporting period, watching margin trends over time catches efficiency problems long before they show up in cash flow.
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