FINANCIAL STATEMENTS

WHY?

deeper understanding of your performance:
Key Financial Statements and Ratios

Key Financial statements are made of Balance Sheet, Income Statement and Cash Flow Statement. Those statements will be assessed by our side, delivering comprehensive overview of your performance, as addition to Ratio analysis.

1. Balance Sheet: A Snapshot of Our Assets and Liabilities

Think of the balance sheet as a picture of our financial position at a specific point in time. It shows what we own (assets), what we owe (liabilities), and the remaining value for our owners (shareholders’ equity). This helps assess our financial stability, liquidity, and solvency.

Key Items:

  • Assets: Cash, inventory, equipment, investments
  • Liabilities: Accounts payable, loans, debt
  • Shareholders’ Equity: Common stock, retained earnings

2. Income Statement: Tracking Our Profitability

The income statement tells the story of our revenue and expenses over a specific period, revealing our profitability. It shows how efficiently we convert sales into profit.

Key Items:

  • Revenues: Sales from our core operations
  • Expenses: Cost of goods sold, operating expenses, interest expenses
  • Net Income (Loss): Profitability after all expenses

3. Cash Flow Statement: Monitoring Our Cash Flow

The cash flow statement tracks the movement of cash in and out of our business from operating, investing, and financing activities. It highlights our ability to generate and manage cash, crucial for short-term financial health.

Key Items:

  • Operating Activities: Cash from customer payments, cash paid to suppliers and employees
  • Investing Activities: Cash spent on buying or selling property and equipment
  • Financing Activities: Cash raised from issuing debt or stock, cash used for dividends or debt repayment

Understanding these Financial statements, together with ratio analysis, will help you to:

  • Evaluate our financial health and performance.
  • Make informed investment decisions.
  • Compare our company to industry peers.