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How to read and analyze the income statement: from what to how
We have already seen each component of the income statement. Now it’s time to move from what to how: how to read it, how to interpret…
Category
Finance
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How the income statement is built: the elements that compose it
A income statement follows a descending logical order. Each line reveals a part of the company’s value creation process. Understanding what each one means and how…
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The Income Statement: The Movie That Reveals If Your Company Really Makes Money
Unlike the balance sheet, which is a photograph on a specific date, the income statement is like a film: it shows what happened to the company’s…
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How to read your balance sheet: The origin and use of funds approach.
Seeing your balance clearly is like looking at yourself in the mirror: it shows you what is there, not what you would like to see. A…
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How the balance sheet is built: the elements that compose it
To read a good balance first, you have to understand its architecture. Behind each figure there is a simple but powerful accounting logic that, once understood,…
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The balance sheet: the financial x-ray that every entrepreneur should know how to read.
‘Accounting is the language of business. You can’t succeed in business if you’re not financially literate.’ — Thomas Ittelson The balance sheet—also known as the statement…
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