Three Main Financial Statements
There are three main financial statements that you will use when analyzing a company. From the statements, you can draw conclusions about the relative health of the company and make some guesses about its financial future. You will find the financial statements in the documents previously discussed.
The three financial statements I cover include …
• The balance sheet
• The income statement
• The statement of cash flows
Together these three reports give you enough information to perform a valuation of the business. The three financial statements give you three different views of the company’s performance, but they all tie together to make a complete picture.