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Financial Statements
Core reports that show profitability, balance sheet strength, and cash generation over time.
Financial Statements
Financial statements are the standardized reports companies publish so investors can understand performance and financial condition.
The three primary statements
Income Statement
Shows revenue, expenses, and profit for a period.
Balance Sheet
Shows what the company owns (assets) and owes (liabilities), plus equity, at a point in time.
Cash Flow Statement
Shows how cash moved through the business: operations, investing, and financing.
Why it matters
Investors use statements to evaluate:
- Growth and margins
- Debt and liquidity
- Whether profits translate into cash
Key Takeaways
- Compare metrics over multiple periods to identify trends.
- Always consider industry context when evaluating numbers.
- Combine with other metrics for a complete picture.
Quick Reference
Category
Financials
Difficulty
Intermediate
Reading Time
1 min
Related Terms
Income Statement
A report of revenue, expenses, and profit over a period (qua...
Balance Sheet
A snapshot of assets, liabilities, and equity at a point in...
Cash Flow Statement
Tracks cash generated and used by operations, investing, and...
Revenue
The total sales a company earns during a period.
Net Income
Profit after all expenses, interest, and taxes.
Learn More
Where You'll See This
Look for this in the Financial Statements section on any stock detail page.