Group 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]

Financial Statements Overview - Financial statements are essential for long-term investors to analyze a company's investment potential [3] - The three primary financial statements are the income statement, cash flow statement, and balance sheet [4] - These reports provide a snapshot of a business's operations and raw data for investment assessment [4] Income Statement (Profit and Loss Statement) - The income statement reveals a company's revenues, expenses, and profits over a period [5] - It provides insights into profitability and operational efficiency [5] - Key metrics include revenue growth, gross margins, and net income [5] Cash Flow Statement - The cash flow statement tracks how a company generates and uses cash [6] - It helps investors assess liquidity, indicating whether a company can meet its obligations [7] - Key metrics include operating cash flow and free cash flow [7] Balance Sheet - The balance sheet records a single snapshot in time, showing what a company owns versus what it owes [8] - It helps determine the financial strength of a company [8] - Key metrics include total assets, total liabilities, and shareholders' equity [8] Financial Ratios & Analysis - Investors use financial ratios to analyze a company's operations [2] - Guru Focus provides charts to visualize money flow in and out of a company for each financial statement [6]

Financial Reporting - Financial statements report business activities and financial performance of a company [1] - Financial statements are used by executives, investors, and lenders [1]