Lesson One · Gut checkDoes one big number settle it?No statements opened yet — just trust your gut.AssessmentA company reports a big profit for the year. On its own, does that prove the business is financially healthy?AYes — a big profit is the whole point of a business, so it settles the question of health on its own.BOnly if that profit is bigger than last year's.CNot really — you'd also want its debts and whether the profit turned into cash.Check answer →