Financial statement analysis
In my last video post, How to Analyze Financial Statements – Part 1, I covered the basics of annual report.
We covered the basics of analyzing three financial statements – Income Statement, Balance Sheet and Cash Flow Statement.
We also saw why reading footnotes is equally important.
Other important parts of annual reports included Directors’ report, Auditor’s report, Management’s discussion and analysis, and Risk management report.
Income statement fundamentals
In this part, you’ll understand the basics of Income Statement.
These are main parts of any income statement:
- Other income
- Materials cost
- Employment cost
- Operating and other expenses
- Interest and finance charges
- Taxation, and
- Proposed dividends
Now, let’s watch a detailed video on income statement analysis.
Income statement analysis video
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