There are 3 main Financial Statements that we look at while analyzing any company:
- Income statement: It shows how much a company is earning and spending
- Balance sheet: It shows the snapshot of a company’s assets (what it owns) and liabilities (what it owes)
- Cash flow: This shows the actual sources and uses of cash during the time period.
The listed companies disclose the financials quarterly and annually. We will mostly concern ourselves with annual statements in our articles.
Chapter 2 – Income Statement basics