Why Should Product Managers Care About Income Statements?
There’s more to them then what they taught you in business school
Financial literacy is not one of the top skills most product managers have. They may have learned about financial statements in university, but it is not something they use daily. Understanding how Income Statements, Balance Sheets, and Cash Flow Statements work is critical for several reasons. These skills can help product managers build better product value equations, business cases, and competitive analyses. The learning process starts with Income Statements (aka P&Ls).
Three Examples of Why Product Managers Should Care About Income Statements
To help product managers understand why it is important to care about income statements let’s examine three examples.
Customer Income Statements
Customer Income Statements give product managers insight into their business. You can determine the health or challenges a customer faces. Are their revenues growing or shrinking? Are they profitable or not? Understanding their income statements helps you to better position your products. You can speak a language that their executives are familiar with. If the company is public, they will…
