What financial statement shows a company's profitability over a specific period?

The Income Statement is the financial statement that specifically shows a company's profitability over a certain period, typically for a fiscal quarter or year. It serves to highlight the company's revenues, expenses, and ultimately, the net income or loss during that timeframe. By presenting this information, the Income Statement allows stakeholders to understand how well the company performed financially and whether it generated a profit or incurred a loss over that period.

In contrast, the other financial statements serve different purposes. The Statement of Cash Flows provides insights into the cash inflows and outflows of a company, detailing how cash is generated and used during a specific period, rather than focusing on profitability. The Retained Earnings Statement tracks changes in retained earnings over time but does not directly measure profitability; it reflects how much of the net income is retained in the business rather than distributed as dividends. The Balance Sheet offers a snapshot of the company's assets, liabilities, and equity at a specific point in time, showcasing the overall financial position instead of focusing on performance over a period.