UNDERSTANDING CASH FLOW STATEMENT Why analyze the cash flow statement? The cash flow statement tells you how much cash went into and out of a company during a specific time frame such as a quarter or a year. You may wonder why there’s a need for a cash flow statement because it sounds

UNDERSTANDING INCOME STATEMENT  Why analyze the Income statement? The income statement answers the question,  “How well is the company’s business performing?” Or   “Is it making money?” i.e., It summarizes how the company’s operations performed during a given period.  A firm must be able to bring in more money than it

UNDERSTANDING BALANCE SHEET Why analyze the balance sheet? A balance sheet is the representation of a company’s financial health. It is like a company’s credit report because it tells you how much the company owns(assets) relative to what it owes(liabilities) at a specific point in time. It basically lists, the