Financial Statements

What is an Annual Report, and 4 Things that an Investor Should Look for in an Annual Report

IntroductionBefore you invest in any company, its annual report can tell you more than a hundred stock tips ever could. An annual report is one of the most powerful yet underrated tools available to investors. It’s more than just a collection of numbers — it’s the company’s story for the year, re...

How to Read a Cash Flow Statement of a Company

People often believe that a cash flow statement shows a company's profitability. But that’s not the case…they are two different things. A cash flow statement lists only the cash inflows and outflows. It helps us understand where the cash is coming in and where the company is spending it. While ...

How to Read an Income Statement of a Company

Would you invest in a company just because they are making profits? Does making profit guarantee that the company is good for investment? A balance sheet helps us understand how much debt a company holds. Whereas an Income Statement shows us how much profit it generates to become debt-free. Fo...

How to Read a Balance Sheet of a Company

One of the biggest mistakes an investor makes is not taking time to understand their company’s financial statements. A financial statement comprises of three main statements - Balance Sheet Income Statement Cash Flow Statement In our previous article, we understood how to read an An...

How to Read an Annual Report of a Company

Would you buy an iPhone just because your friend asked you to do? Or would you do some research before spending your money? We check for reviews online and compare products to be sure that the seller can be trusted. Then why not do the same before buying a share of a company? Before we invest, we...