Financial Analysis
What Three Years of a Cash Flow Statement Reveals That One Year Hides
Profit is an opinion, cash is a fact, and one year of cash flow is a snapshot. It takes three years for the snapshot to become a story.
6 min readRead more
Financial Statements
16 pages carry this tag.
Analysis
Concept Guides
Concept Guide
Reading an Income Statement
The income statement (also called the Profit & Loss or P&L statement) answers one question: did the company make money during this period?
8 min readRead more
Concept Guide
Reading a Balance Sheet
The balance sheet is a photograph taken at a single point in time, the last day of a quarter or financial year.
9 min readRead more
Concept Guide
Reading a Cash Flow Statement
Profit can be manipulated; cash is harder to fake. The cash flow statement tracks the actual movement of money in and out of the business during a period.
8 min readRead more
Concept Guide
Linking the Three Statements
The three financial statements are not independent documents, they are three views of the same underlying reality.
10 min readRead more
Concept Guide
Ind AS vs IFRS vs Indian GAAP
Accounting standards are the rulebook companies follow when preparing financial statements. The rules dictate when revenue is recognised, how assets are valued, and how liabilities are disclosed.
7 min readRead more
Concept Guide
Common Adjustments (leases, ESOPs, one-offs)
Reported financial numbers are a starting point, not the end point. Analysts adjust reported figures to make them more comparable across time and across companies.
9 min readRead more
Concept Guide
Quality of Earnings
Not all profits are equal. A company can report ₹100 Cr of PAT that is backed by ₹120 Cr of operating cash flow, high quality earnings.
10 min readRead more
Courses
Course
Fundamental Analysis: The Complete Course
The original fundamental analysis course: approaches, qualitative factors, the three statements, ratio categories, sector checks, red flags, and valuation models.
Read more
Interactive Lessons
Lesson
Read an Income Statement, Line by Line
Walk through a real Indian company's P&L, line by line, and understand what each number means.
Read more
Lesson
Compute Ratios from Raw Statements
Pull numbers from financial statements and compute the ratios analysts use every day, you do the math, we check it.
Read more
Glossary
Glossary
Market Cap
The total market value of a company's outstanding shares. Represents what the market believes a company is worth.
Read more
Glossary
Book Value
The net asset value of a company divided by outstanding shares. Represents theoretical value if company was liquidated.
Read more
Glossary
Free Float
The portion of shares available for public trading, excluding promoter holdings, government holdings, and locked-in shares.
Read more
Glossary
Face Value
The nominal value of a share as stated in the company's charter. Used for accounting purposes and calculating dividends.
Read more
Glossary
Cash Flow from Operations
The cash a company actually received from its core business of selling goods and services during the year, after paying its operating costs. It excludes investing and financing flows.
Read more
Related topics: Valuation, DCF, Relative Valuation, Cost of Capital, Cash Flow, Earnings Quality, Red Flags, Ratios