Pearson plc Income Statement 2011-2025 | PSO

The income statement is one of the three key financial reports of a company Pearson plc (alongside the balance sheet and the cash flow statement). It shows how the company makes money and what its expenses are:

• How much revenue the company earned
• How much it spent on production, personnel, marketing, taxes, etc.
• What profit remained in the end

Analyzing the income statement helps an investor understand whether the business generates stable and growing profits, how effectively the company controls its expenses, and whether it is capable of generating income in the future. Additionally, this analysis shows how the company copes with crises and economic cycles, and allows assessing the potential for stock price growth and dividend payments.

• The income statement may include both recurring and one-time items (for example, profit from the sale of assets). It is necessary to separate core metrics from one-off events for accurate analysis.
• Companies often publish interim reports (e.g., quarterly), which allows for more timely tracking of trends.
• A combined analysis of the income statement with the balance sheet and cash flow statement provides a comprehensive view of the company’s financial health.