Financial statements are intimidating.
So I built visuals to help you digest them.
There are 3 main statements to know:
π‘ Income Statement
βοΈ Balance Sheet
π΅ Cash flow Statement
I use Apple $AAPL as an example.
So I built visuals to help you digest them.
There are 3 main statements to know:
π‘ Income Statement
βοΈ Balance Sheet
π΅ Cash flow Statement
I use Apple $AAPL as an example.
π‘ Income Statement
Also called Profit & Loss statement (P&L).
It shows a company's revenue and expenses over a specific period, resulting in a net profit or loss.
It includes:
β’ Revenue (the "top line").
β’ Net income (the "bottom line").
And everything in between.
Also called Profit & Loss statement (P&L).
It shows a company's revenue and expenses over a specific period, resulting in a net profit or loss.
It includes:
β’ Revenue (the "top line").
β’ Net income (the "bottom line").
And everything in between.
The income statement is all about business performance.
You can answer questions like:
β’ How do they make money?
β’ Is the revenue growing?
β’ What are the main expenses?
β’ Is the company profitable?
You can answer questions like:
β’ How do they make money?
β’ Is the revenue growing?
β’ What are the main expenses?
β’ Is the company profitable?
βοΈ Balance Sheet
It shows a company's assets, liabilities, and equity at a specific point in time. Itβs a snapshot at the end of a period.
β’ Assets: What it owns.
β’ Liabilities: What it owes.
β’ Shareholdersβ Equity: Whatever is left.
It shows a company's assets, liabilities, and equity at a specific point in time. Itβs a snapshot at the end of a period.
β’ Assets: What it owns.
β’ Liabilities: What it owes.
β’ Shareholdersβ Equity: Whatever is left.
The balance sheet is like a snapshot of a business's financial health.
You can answer questions like:
β’ Can the company pay its debt?
β’ How leveraged is the company?
β’ What is the company's net worth?
β’ Is the financial position improving?
You can answer questions like:
β’ Can the company pay its debt?
β’ How leveraged is the company?
β’ What is the company's net worth?
β’ Is the financial position improving?
π΅ Cash flow Statement
It shows how a company's activities have affected its cash position over a specific period.
β’ Cash from operations.
β’ Cash from investing.
β’ Cash from financing.
β‘οΈ Net cash flow for the period
It shows how a company's activities have affected its cash position over a specific period.
β’ Cash from operations.
β’ Cash from investing.
β’ Cash from financing.
β‘οΈ Net cash flow for the period
A cash flow statement is like a money diary for a business, showing where the money is coming from and where it's going.
You can answer questions like:
β’ How is the company generating/using cash?
β’ How much cash do they have on hand?
β’ Is the cash position improving?
You can answer questions like:
β’ How is the company generating/using cash?
β’ How much cash do they have on hand?
β’ Is the cash position improving?
Want to learn more about the 3 financial statements?
Our 3 ultimate guides (all free) are on our website.
How to Analyze:
π‘ Income Statement
βοΈ Balance Sheet
π΅ Cash flow Statement
appeconomyinsights.com
Our 3 ultimate guides (all free) are on our website.
How to Analyze:
π‘ Income Statement
βοΈ Balance Sheet
π΅ Cash flow Statement
appeconomyinsights.com
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