"The four financial statements that are most commonly used to gauge a company's financial health include the income statement, balance sheet, cash flow statement, and equity statement. The income statement, which is also called a profit and loss statement, shows a company's profits and losses over a period of time, which allows you to see if the company is profitable or not. The balance sheet, meanwhile, tracks a company's financial progress and displays its assets, liabilities, and equity. A cash flow statement shows the money that goes in and out of a company, while an equity statement displays the retained earnings or profit that a company can use to invest or pay off liabilities."