As a financial analyst, you should know how to read financial statements.
Understanding financial statements would be easier if you understand different variables in annual reports.
Analyzing financial statements
Financial statement analysis includes analyzing three financial statements – Income Statement, Balance Sheet and Cash Flow Statement.
Apart from these three statements, reading footnotes is equally important. Reading footnotes is an art and you can learn this art, if you understand the science and technique behind it.
Other important parts of annual reports include Directors’ report, Auditor’s report, Management’s discussion and analysis, and Risk management report.
I’m going to cover examples of financial statement analysis in this video series.
In this part, you’ll understand the basics of financial statement analysis.
Financial statement analysis video:
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