Every business has 3 sets of financial statements: Income Statement, Balance Sheet and Cash Flow Statement. Learning how to read an income statement is perhaps the most important skill one needs to have when it comes to investing.
Similar to how a doctor can pinpoint issues or potential issues by looking at an X-ray report, an investor should also be able to tell whether a company is healthy or weak by looking at the numbers.
This would be a three-part beginner series that goes into the details and know-how of how to read each financial statement.
My major is in accounting and I am writing this with the aim to help beginners become financially savvy and get started with investing.
By the end of this three-part series, you will be equipped with the skillsets to read a basic financial statement.
With enough practice, you would...