←Stage 14
Part Six · Stock Picking

Reading Financial Statements

The three financial statements, what each answers, and how they connect — in ten lessons.

A business has three financial statements: income, balance sheet, cash flow. Each answers a different question. None of them tells the whole story alone. Ten lessons that take you from the cascade of the income statement to the connections between all three — with fake-but-realistic statements you tap, fill in, and scan for red flags. Ends with a directory of every major regulator filing database so you can find the truth instead of the press release.

0 / 10 done
StartLesson 1 · The Three Statements at 10,000 Feet
What you’ll learn & rewards10 lessons · Statement-Fluent badge · 360 coins
  • A working map of the three statements and how they connect
  • Confidence reading an income statement line by line
  • Three margins (gross / operating / net) and what each reveals
  • Balance-sheet literacy — assets, liabilities, equity, working capital
  • Cash-flow fluency — CFO / CFI / CFF and why FCF beats net income
  • A scan for the most common earnings-quality red flags
  • A bookmarks list of regulator filing databases by region
Badge
Statement-Fluent
Coins
360 available

All lessons

  1. 01The Three Statements at 10,000 Feet
  2. 02Income Statement Structure
  3. 03Margins and What They Reveal
  4. 04Balance Sheet Structure
  5. 05Working Capital
  6. 06The Cash Flow Statement
  7. 07Free Cash Flow — The Number That Matters Most
  8. 08Reading the Three Together
  9. 09Red Flags: A/R, Inventory, FCF < Net Income
  10. 10Where to Find Financials Globally

Key terms in this stage