Company Financials

Analyzing company financials is crucial for evaluating the financial health and performance of individual businesses. In this section, we will explore the key components of company financial statements and how to interpret them effectively.

Balance Sheet Analysis

  • Assets, Liabilities, and Equity: understanding the components
  • Analyzing liquidity and solvency ratios
  • Assessing the financial position and stability of a company

Income Statement Analysis

  • Revenue, expenses, and net income: dissecting the statement
  • Profitability ratios: gross margin, operating margin, and net margin
  • Evaluating the financial performance and efficiency of a company

Cash Flow Statement Analysis

  • Operating, investing, and financing cash flows: interpreting the statement
  • Free cash flow and its significance
  • Assessing the cash generation and sustainability of a company

Financial Ratios for Company Analysis

  • Liquidity ratios: current ratio and quick ratio
  • Profitability ratios: return on equity (ROE) and return on assets (ROA)
  • Growth and valuation ratios: P/E ratio, PEG ratio, and dividend yield