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
Accounting
Reading the three statements and the adjustments analysts make to them.
7 guides. Read in order, or jump to what you need.
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