Category Archives: stocks

How to Read a Financial Statement V

Key Accounting Ratios A number of key accounting ratios can be calculated from the financial statements of a business. These ratios provide an objective summary of the financial health and investment quality of a business. Remember though that accounting methods … Continue reading

Posted in investing, stocks | Leave a comment

How to Read a Financial Statement IV

The last (but certainly not least important) financial statement is the cash flow statement. This statement shows the movements of cash into or out of the business. No matter how healthy the profit & loss account and balance sheet may … Continue reading

Posted in investing, stocks | Leave a comment

How to Read a Financial Statement III

The Balance Sheet is a snapshot of a business’s financial position (what it owes and owns) at a particular moment in time.

Posted in investing, stocks | Leave a comment

How to Read a Financial Statement II

The Profit and Loss Account summarizes a business’s performance over a period (usually a year).

Posted in investing, stocks | Leave a comment

How to Read a Financial Statement I

This section introduces the key concepts of accounting for investors. Its intention is to better enable investors to understand and interpret the financial statements of businesses they might invest in. Accounts provide a (hopefully) objective analysis of the state and … Continue reading

Posted in investing, stocks | Leave a comment