Investing 101: How to Read (and understand) Financial Statements (to become a better investor) [Issue #9]

The Beginner's Guide to Investing: How to Analyze Financial Statements

As an investor, it's critical to understand financial statements to make better-informed investment decisions. Financial statements provide vital information about a company's profitability, liquidity, and financial health. By analyzing financial statements, you can gain valuable insights into a company's financial performance, identify potential risks and opportunities, assess growth potential, and evaluate its financial stability. This will enable you to make informed investment decisions.

There are four financial statements that every investor should know:

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Stockholders' Equity Statement

Income Statement:

The income statement, also known as the profit and loss statement, provides information about a company's profitability and ability to generate income. It shows a company's revenues, expenses, and net income over a specific period, making it an essential tool for investors to understand a co…