LET'S GET OVER WITH FINANCIAL STATEMENTS: INCOME STATEMENT

by Sagar UB

When we first start investing, we usually based our decision on actions of acquaintances, neighbours, relatives, friends or colleagues, who are already investing in stock market. If everybody around us is investing in particular stocks, we have tendency to invest in those stocks. But this strategy is bound to backfire in long run and we must always avoid it, if you don’t want to lose your hard earned money. It’s always better to do research or as an expert says ‘Do your homework, before investing’. For this one of the best tools to start with are financial statements. All listed companies on stock exchange, releases all sorts of documents to investors, ranging from quarterly reports, annual reports and press releases. A company’s financial statements provide various financial information that investors can use to evaluate a company’s financial performance. Financial statements if carefully explored are goldmines of information. But common investors find it difficult to understand all those financial statements and have no clear idea how to use it. This book will aid to do exactly that.
This book starts with essential of financial accounting, where we will get aquatinted with basic accounting standards and procedure. Then we will explore income statement in details. After that we will study some basic financial ratios we can calculate using the income statement. The basic ratios derived from income statement are very good starting point to choose your company for further detailed analysis.
The idea behind this book to keep it as practical as possible and give keep it as simple as possible. I don’t want you get overwhelmed by combining all financial statements and deriving so many number of ratios.

43 pages, Kindle Edition

First published December 2, 2014