How can an investor use financial statements to assess a company's profitability, liquidity, and long-term solvency?
t specific ratios and metrics should they consider?
What are the differences between cash flow statements and income statements, and why is it important for a business to analyze both when evaluating its financial performance and sustainability?
**How do the balance sheet, income statement, and cash flow statement interrelate, and why is it important to analyze them together to assess a company's financial health?
2. **What are some key financial ratios derived from financial statements, and how can they be used to evaluate a company's performance and operational efficiency?
3. **How does the treatment of non-recurring items and adjustments impact the interpretation of a company's financial statements, and what should analysts look for when identifying these items?
**What are the key components of financial statements, and how do they each contribute to understanding a company's financial health?
2. **How do changes in accounting policies or estimates impact the accuracy and comparability of financial statements over time?
3. **What are the common financial ratios derived from financial statements, and how can they be used to assess a company's performance and efficiency?
**What are the key components of a company's financial statements, and how do they interrelate with one another to provide a comprehensive view of the company's financial health?