Savvy managers examine financial statements closely. They compute ratios and benchmark performance over time and against industry norms. The income statement is a good place to start this analysis. Focus on key ratios, including gross profit, net profit, and returns on assets and equity. If profitability declines, find the cause. Clues may be found in the major income statement categories: gross sales, cost of sales, and selling and administrative costs. We can help you detect inefficiencies and anomalies, as well as brainstorm possible fixes.