Which financial statement reflects a company's profitability over a specific period?

The income statement is the financial statement that reflects a company's profitability over a specific period. It provides a comprehensive view of a company's revenues, expenses, and ultimately its net income or loss during that timeframe. This statement typically covers periods such as a quarter or a year, allowing stakeholders to assess how well the company has performed in generating profit relative to its expenses incurred within that period.

The income statement is structured to show the top line, which is revenue, followed by various expenses, culminating in the bottom line, which represents net income. This information is essential for investors, management, and analysts in evaluating the company's operational efficiency and financial performance.

In contrast, the cash flow statement tracks cash inflows and outflows over a period, providing insight into cash management but not directly focusing on profitability. The balance sheet offers a snapshot of a company’s financial position at a specific point in time, detailing assets, liabilities, and equity without indicating operational performance over a period. The statement of changes in equity outlines movements in equity accounts, such as investments by owners and distributions, but it does not summarize profitability directly. Thus, the income statement stands out as the key document for assessing profitability over time.