Learn Financial Statement Basics: A beginner's journey

Learn the basics of financial statements—income statement, balance sheet, and cash flow statement—from a beginner-friendly perspective. Understand how analysts and investors compare performance over time and against rivals.

Analyze cost of sales by products and services, showing how Apple’s 56.6 billion cost supports 91.8 billion in revenue, with 52 billion for products and 4.5 billion for services.

Explore gross margin as the difference between total net sales and total cost of sales, showing how subtracting cost of sales from net sales yields the gross margin.

Analyze operating expenses, including research and development and SG&A, alongside cost of sales, detailing salaries, rents, and day-to-day Apple operations totaling nine point six billion.

Learn how operating income reveals profitability by subtracting total operating expenses from gross margin; prioritize operating income over revenue or gross margin when assessing a company's financial health.

Learn how companies group small 'other income/expense' items to simplify disclosures and compute income before tax and net income after taxes.

Interpret Apple’s income statement by comparing quarters to note higher sales and costs (cost of sales), rising operating income, and the geographic revenue mix, especially iPhone’s dominance.

Learn how a balance sheet reports a company's assets and liabilities, revealing its net worth through shareholders equity. The lecture distinguishes current and non-current assets and liabilities with Apple examples.

Interpret Apple's balance sheet by highlighting a 340 billion asset base and about 200 billion in cash and marketable securities, and analyze debt, equity, and the book value.

Understand how Apple's cash flow statement links net income to cash by detailing operating, investing, and financing activities and explaining depreciation and amortization as non-cash items.

Interpret a cash flow statement by examining operating, investing, and financing activities; Apple shows 30.5 billion from operations but an 8.5 billion cash outflow due to investing and stock buybacks.