Reading Financial Statements: An Introduction Financial statements are usually used by investors who are interested to “dig into the numbers” and assess the fundamentals of a company. You can look at it as report cards that provide you with an insight into a company’s health and performance. Many people get scared off by the prospect of reading financial statements, but it doesn’t take a degree in business to be able to understand a few key figures. The first time you look at one, you may be overwhelmed, but as you grow as an investor, you’ll grow more comfortable with them. By understanding the numbers in these financial statements, investors can analyze how a company is performing operationally. Is the company growing its sales? How about improving its margins? Beyond operational growth, one critical component is to also assess the company’s debt levels. You wouldn’t want to invest in a company that is heavily laden with debt, would you?...