Financial Statements

Financial statements are the standardized reports companies publish so investors can understand performance and financial condition.

The three primary statements

Income Statement

Shows revenue, expenses, and profit for a period.

Balance Sheet

Shows what the company owns (assets) and owes (liabilities), plus equity, at a point in time.

Cash Flow Statement

Shows how cash moved through the business: operations, investing, and financing.

Why it matters

Investors use statements to evaluate:

• Growth and margins
• Debt and liquidity
• Whether profits translate into cash