An income statement is divided by direct, indirect, and interest and tax expenses. Gross profit, operating profit, and net profit margins are important measures for analyzing an income statement.

Gross margin, a closely watched measure of profitability, came in at 17.2% for Q2, down from 18.0% a year ago but up from 16.3% in Q1, and from 16.3% in Q4. Gross profit, or revenue minus the cost of ...