Apple(US:AAPL) ZACKSยท2025-11-25 02:36Group 1: Financial Statements Overview - Financial statements are essential tools for evaluating a company's performance and financial health [1] - The income statement, also known as the Profit & Loss (P&L) statement, details a company's revenues, expenses, and net income over a specific period [2] - The balance sheet provides a snapshot of a company's financial position, showing assets, liabilities, and equity [3] - The cash flow statement tracks the movement of cash in and out of a company, categorized into operating, investing, and financing activities [4] Group 2: Key Components of Financial Statements - Revenue represents the total income generated from the company's core business activities [6] - Expenses encompass all costs incurred in running the business, including wages, rent, and utilities [6] - Net income indicates the profit or loss after all expenses have been deducted from revenue [6] - Assets include everything the company owns, such as cash, buildings, and inventory [6] - Liabilities reflect what the company owes, including loans and unpaid bills [6] - Equity represents the residual interest in the assets of the company after deducting liabilities [6] Group 3: Cash Flow Statement Breakdown - Operating activities involve cash generated from the company's core business operations [6] - Investing activities account for cash used in significant purchases like equipment or property [6] - Financing activities relate to cash transactions for raising or returning funds, including borrowing and repaying debt [6]