Invest
Balance Sheet & Cashflow – summarized definition
By Rainbow Coin  •  March 25, 2016
I have decided to free this content up from being a Page into a Post so I could put my page space to better use, akan datang. Nevertheless this is very important stuff to make sense of the annual reports that the companies you invest in send yearly. Making sense of a company's Balance sheet - it should all balance up In a Balance sheet there's two parts of equivalent values: 1) Total Assets $ = 2) Total liabilities and Equity This is because Equity = Total assets - Total liabilities, so both values would be same. Equity is also known as net asset or net worth of a company. It comprises of two parts - Retained earnings and Treasury stocks Reference: http://news.morningstar.com/classroom2/course.asp?docId=145091&page=7&CN= An important ratio that you can derive from here is this: Current asset / Liabilities If it's more than 1.5, the company is generally doing okay (not neck-high in debt)......
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By Rainbow Coin
I began exploring the financial world in year 2010, hoping to get out of the rat race and be financially independent. 2010 was the aftermath period of the Lehman crisis when a pretty shaken up market was struggling to recover. On hindsight, that was the perfect time to catch multi-bagger stocks should I be a veteran or at least had some basic knowledge of picking up 'gems'. My learning curve was steep then, as I have absolutely no friends or relative who could shed some light on what's investing about.
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