How to Read a Company’s Financial Statement
In stock investing, it is important to base your decisions on sound analysis of the company’s performance and growth prospects. This is not possible without going through the nitty-gritty of a company’s financial statement. For instance, you need to know if it is generating revenues from its core businesses operation or if it has enough cash to cover dividend payment since dividends are usually paid in cash. This is best analyzed by looking at cash flow statements. If you are wondering just how much profit a company has made in its income report over a period of time, you have to refer to its income statement.