FINANCIAL STATEMENT ANALYSIS
How to read and analyse balance sheets, P&Ls and cash flow statements
Introduction
▼General Guidelines
▼Balance Sheet
▼Profit and Loss Statement
▼- What is a profit and loss statement?
- Revenue recognition
- Cost of goods sold (COGS)
- Depreciation and amortisation
- Operating income
- Operating expenses
- Non-operating income
- Non-operating expenses
- Income taxes
- Earnings per share (EPS)
- Limitations of the profit and loss
- Red flags in the profit and loss
- How to evaluate earnings quality
Cash Flow Statement
▼Statement of Changes in Equity
▼Notes to Financial Statements
▼- What are notes to financial statements?
- Significant accounting policies
- Consolidated financial statements
- Estimates and assumptions
- Revenue recognition policies
- Breakdown of assets and liabilities
- Contingent liabilities
- Related party transactions
- Joint ventures
- Lease disclosures
- Financial instruments and risks
- Segment reporting and divisions
- Subsequent events and disclosures
- Limitations of the notes
- Red flags in the notes