Income statement (compte de résultat)
The income statement summarizes all revenues and expenses of a business over one financial year. It measures whether the period created or destroyed value, ending at a net profit or net loss figure.
In practice
Unlike the balance sheet, which captures a single moment, the income statement tells a twelve-month story. It reads top to bottom: revenue, then successive margins down to net profit. A franchisee who improves gross margin by two points without touching revenue has reduced purchasing costs — perhaps through the network’s group buying program. This statement is mandatory in any annual review presented to the franchisor.