In This Chapter
• Finding everything you need to know about a company’s finances
• Determining what the balance sheet tells you
• Revealing the income statement
• Reading the all-important statement of cash flows
If the thought of analyzing financial statements intimidates you, welcome to the crowd. People spend years in college learning to analyze financial statements, and this book will not replicate those years of study. However, you will come away with a better understanding of what the numbers mean and which ones are really important to your analysis.
Financial statements contain the history of what happened to the company during a certain period. The law requires that publicly traded companies provide audited ...