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How to Read Financial
Statement of a Company?
Financial statements are written records that illustrates the business activities and the
financial performance of a company. Inmost cases they are audited to ensure accuracy for
tax, financing, or investing purposes.
A methodically work through of the three financial statements in order to assess the
Financial health of a company
Balance Sheet is a snapshot at a point in time. On the top half you have the company’s assets and
on the bottom half its liabilities and Shareholders’ Equity (or Net Worth). The assets and liabilities
are typically listed in order of liquidity and separated between current and non-current.
The income statement covers a period of time, such as a quarter or year. It illustrates the
profitability of the company from an accounting (accrual and matching) perspective. It starts with
the revenue line and after deducting expenses derives net income.
The cash flow statement look at the cash position of the company . It answers it answers the
questions ; How much of the organisation’scash goes to its creditors and shareholders? Does it keep
enough for its own investment and growth? has 3 components cash from operations, cash used in
investing, and cash from financing. It “undoes” all of the accounting principles and shows the cash
flows of the business.
Click Click
Understanding the Financial Statements
How to read Balance Sheet
How to analyse Cashflow Statements
How to read P&L statements
What will you learn?
How to read Financial Statements?
Bid farewell to chaotic numbers and complex terms by
mastering the art of analysing Financial Statements with the
Pro Expert, CA Nishant Kumar!
How to read Financial Statements?
Financial statements are the tools to evaluate the financial
health of the company. This Course on quest by finology, will
going to discuss the basics of how to read financial statements
of a company. Enroll now!!
Thank-You

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How to read financial statement of a company .pdf

  • 1. How to Read Financial Statement of a Company?
  • 2. Financial statements are written records that illustrates the business activities and the financial performance of a company. Inmost cases they are audited to ensure accuracy for tax, financing, or investing purposes. A methodically work through of the three financial statements in order to assess the Financial health of a company Balance Sheet is a snapshot at a point in time. On the top half you have the company’s assets and on the bottom half its liabilities and Shareholders’ Equity (or Net Worth). The assets and liabilities are typically listed in order of liquidity and separated between current and non-current. The income statement covers a period of time, such as a quarter or year. It illustrates the profitability of the company from an accounting (accrual and matching) perspective. It starts with the revenue line and after deducting expenses derives net income. The cash flow statement look at the cash position of the company . It answers it answers the questions ; How much of the organisation’scash goes to its creditors and shareholders? Does it keep enough for its own investment and growth? has 3 components cash from operations, cash used in investing, and cash from financing. It “undoes” all of the accounting principles and shows the cash flows of the business.
  • 4. Understanding the Financial Statements How to read Balance Sheet How to analyse Cashflow Statements How to read P&L statements What will you learn? How to read Financial Statements? Bid farewell to chaotic numbers and complex terms by mastering the art of analysing Financial Statements with the Pro Expert, CA Nishant Kumar!
  • 5. How to read Financial Statements? Financial statements are the tools to evaluate the financial health of the company. This Course on quest by finology, will going to discuss the basics of how to read financial statements of a company. Enroll now!!