H. E. Colby
Use these resources to learn how to read and understand important financial statements in the business world.
Knowing how to work with the numbers in a company's financial statements is an essential skill for stock investors. The meaningful interpretation and analysis of balance sheets, income statements and cash flow statements to discern a company's investment qualities is the basis for smart investment choices.
What could your business do with an extra $1 million in cash? Borrow less? Invest in new equipment? Hire staff to help grow your sales? The answers likely depend on the goals for your specific business, but few entrepreneurs would argue they couldn't use the extra money. The issue, of course, [...]
Assessible information to help non-financial wonks wade through an annual report.
Financial statements are the report card of business. Whether you are a new investor, a small business owner, a manager, an executive, a non-profit director, or just trying to keep track of your personal finances, you need to understand how to read, analyze, and create financial statements so you can get a full and accurate understanding how much money their is, how much debt is owed, the income coming in each moth, and the expenses going out the door.
Guide to annual reports, with a sample income statement, cash flow statement, and balance sheet.
Cheat Sheet If you're looking at a business with an interest in investing in it, you need to read its financial reports. Of course, when it comes to the annual report, you don't need to read everything, just the key parts.
What are some big red flags in a 10-K? A company whose message is changing from year to year is never a good sign. New risk factors, for example, are a red flag, Bartel said. Say a big industrial company suddenly adds an environmental liability, like asbestos liability.
