How should you use the investment balance sheet?
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Written on: 10.11.2009 [13:07]
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Vincent
Vincent
Topic creator
Posts: 1
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I know that a company's financial situation is crucial to your investment. Balance sheet, income statement, cash flow statement just to name a few... all words that leave me drawing a blank! How should I analyse these papers to help me with my own financial decisions? |
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Written on: 17.11.2009 [22:34]
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Alexis
Alexis
Posts: 1
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You need to look at these sheets if you're planning to invest in that company. Of course, a lot of people leave this up to their share trader / investment manager... In a nutshell, the balance sheet gives you the financial balance of the company: what money it has and what it owes. The income statement is all about company profit: what money was made and what was lost. The cash flow statement shows you where the money went: who got what, when and why! Looking at these sheets allows you to assess a company's financial health and decide whether they are a sound investment for the future. |
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