Definition

Noun: A financial report summarizing a company's revenues, expenses, and profits or losses over a specific accounting period, such as a quarter or a year. It provides a detailed account of the company's operational performance, showing how revenue is transformed into net income.

Usage

The term is used in business, accounting, and finance contexts to refer to a formal document that presents a company's financial performance from its core operations. * The board reviewed the operating statement before approving the annual budget. * A clear operating statement is essential for investors to assess a company's profitability.

Examples

• The quarterly operating statement revealed a significant increase in sales revenue.
• Analysts compared the operating statements from the last three years to identify trends.
• Preparing an accurate operating statement is a key task for the accounting department.

Advanced Usage

• In Management Discussion: Often discussed in relation to specific line items like "cost of goods sold" or "operating income" found within the statement.
  • The CEO focused on the marketing expenses detailed in the operating statement.
• As a Component of Full Reporting: It is a primary component of a company's complete financial statement package, which also includes the balance sheet and cash flow statement.

Variants and Related Words

• Income Statement: The most common and direct synonym for an operating statement.
• Profit and Loss Statement (P&L): Another widely used synonym.
• Statement of Operations: A more formal variant of the term.

Synonyms

• Income Statement
• Profit and Loss Statement (P&L)
• Earnings Statement

Related Phrases

• To generate an operating statement: The process of creating this financial report.
  • The software helps accountants quickly generate an accurate operating statement.
• Contained in the operating statement: Used to specify where certain financial information is found.
  • The figures for administrative costs are contained in the operating statement.

Noun

1. a financial statement that gives operating results for a specific period