No Picture
Trading Ideas

What is a Cash Flow Statement?

It’s vital for companies and investors to understand cash flow: the money coming into a company and leaving it. To understand this metric at a glance, companies will prepare a cash flow statement. This financial document is a summary of the entity’s cash flow over a specific accounting period. It shows cash and cash equivalents as they enter and leave a business, painting a picture of financial health.
A cash flow statement is one of the big three financial documents companies rely on to understand financial health, alongside the balance sheet and income statement. Alone, the cash flow statement is …read more […]

No Picture
Trading Ideas

What is a Balance Sheet?

What is a business worth? To get the answer, you’ll need to look at its balance sheet. A balance sheet is a statement showing an entity’s financial position by reporting on assets, liabilities and shareholders’ equity on a specific date (commonly at the end of an accounting period). It shows what a company owns and owes, as well as shareholders’ ownership.
A balance sheet is one of the core financial statements every public company needs to issue regularly. It’s something every investor should get familiar with and understand, because it provides significant context for the financial health and worth of a …read more […]