Read financial statements as a stock investor

Identify the five balance sheet components - current assets, non-current assets, current liabilities, noncurrent liabilities, and shareholders equity - and note that assets equal liabilities plus equity.

Learn how a balance sheet must balance, reflect assets, liabilities, and shareholders' equity on the last day of the financial year, with retained earnings indicating accumulated profits.

Explore how balance sheets present group, company, and non-controlling (minority) interests through parent and subsidiaries, acquisitions at varying percentages, and when minority interests appear or are absent.

Learn to read a balance sheet by examining current and non-current assets, liabilities, and growing retained earnings to assess cash strength and shareholder equity.

Examine the balance sheet as the snapshot of a company’s financial position, where assets equal liabilities plus shareholders' equity, with current and non-current assets and liabilities, and retained earnings.

Explore the balance sheet with quiz questions on undistributed profit, cash at year end, and gauge the company's health; answers appear in the next video.

Learn that undistributed profit is not cash, and that cash and cash equivalents may include borrowed funds; use profit and loss and cash flow statements to gauge performance and health.

Explore liquidity and solvency ratios using balance sheet data to assess a company’s financial health. Understand current and asset test ratios, gearing, and debt to equity ratio through real examples.

Learn to read the income statement, or profit and loss statement, to assess a company's performance over the financial year and compare across manufacturing, services, and banks for stock investing.

Explore the manufacturing income statement, from January to December, covering revenue, cost of sales, gross margin, operating income, net income, and earnings per share.

Analyze how the income statement for manufacturing companies sums a year’s transactions, marks the end date, and highlights revenue, gross profit, operating and net income, plus three key ratios.

Analyze manufacturing income statements across years to chart gross, operating, and net profit margins, compare trends, and assess competitive edge and effects of R&D and pandemic.

Learn how a land transport company's income statement presents revenue and operating costs, leading to net profit and margins. Calculate earnings per share for shareholders and compare year-on-year performance.

Examine how the income statement for a land transport service presents revenue, operating profit margin, and net profit margin across years, highlighting the 2020 pandemic impact.

Explore how a bank's income statement differs from product companies, highlighting net interest income, net interest margin, non-interest income, and key metrics like ROE, ROA, and price-to-book.

Analyze how commercial banks present an income statement, focusing on net interest income and fee-based income, operating expenses, and allowances for loans to reveal 2020 pandemic impacts on net profit.

Learn how to assess a company's ability to cover finance costs using the interest cover ratio, with examples showing profitable, loss-making, and mid-range cases and the 3.0 threshold.

Learn to read income statements, identify gross, operating, and net profit and margins, and connect retained earnings to the balance sheet for evaluating company performance.

Explore cash flow in depth, including the cash flow statement, timing differences between transactions and cash, and how positive or negative cash flow affects dividends and ongoing concern.

Learn how the cash flow statement reveals a company’s health by examining operating, investing, and financing activities, yielding net cash flow and its implications for profit and growth.

Analyze how the cash flow statement tracks cash inflows and outflows, emphasizing operating cash flow, its positive long-run trend, and GAAP non-cash adjustments.

Identify big cash items in financing and investing activities within the cash flow statement to explain why funds are raised and how they are deployed for investors.

Learn how free cash flow, defined as operating cash flow minus capital expenditure on property, plant and equipment, gauges a company's ability to invest, pay dividends, and sustain operations.

Explain the statement of changes in equity, how profits, dividends, withdrawals, and share issues alter equity, and why stock investors rely on the balance sheet.

Explore how to read financial statements: balance sheet, income statement, cash flow statement, and assess annual reports, dates, and the full financial year for stock investing.

Decide which stocks are good and evaluate their valuation to know when to buy or trade, and preview stock valuation and investing instruments for growth and passive income.