This post is entirely contributed by our veteran community member, Tam Ging Wien, author of REITs to Riches: Everything You Need to Know About Investing Profitably in REITs
We decided contribute to the InvestingNote community with an educational piece to demystify the 3 financial statements.
When we read we begin with A…B…C…, when we sing we begin with Do… Re…Me…
That at least how the song lyrics go.
But when we want to understand and assess the financials of a stock, we need to begin with the 3 financial statements, namely:
- Balance Sheet (or Statement of Financial Position)
- Income Statement (or Profit/Loss Statement)
- Cash Flow Statement
In our last “The Beginner’s Guide to…” series, we covered the The Beginner’s Guide to Understanding The 3 Financial Statements.
After having an understand of the 3 financial statements, we continue the series with analysing these financial statements in order to understand the financial health of a company. In this post, we will be learning how to analyse the Income Statement.