The HBR Guides Collection (8 Books) (HBR Guide Series)

9

The Key Financial

Statements

What does your company own, and what does it owe to

others? What are its sources of revenue, and how has it

spent its money? How much profi t has it made? What

is the state of its fi nancial health? You can answer those

questions by turning to the three main fi nancial state-

ments: the balance sheet, the income statement, and

the cash fl ow statement.

These are the essential documents of business. Execu-

tives use them to assess performance and identify areas

for action. Shareholders look at them to keep tabs on how

well their capital is being managed. Outside investors use

them to identify opportunities. Lenders and suppliers ...