When you ask a financially focused audience for a show of hands to find out who reads the financial statements sent to them by the companies in which they invest, the answer is invariably about 3%-5% of the attendees. That is an abysmal percentage, yet completely understandable.
Just the thought of reading and comprehending the small print, convoluted charts and the seemingly-endless gobbledygook of the legalese contained in the pages of 10-Ks and annual reports can put a glaze over the eyes of even the most avid investors.
Now, you can get advice about how to read and easily understand these company reports in our Premium Report Understanding Financial Statements.
While company financial reports are historical in nature, these reports are very important barometers for gauging just how well, or poorly, companies are coping today—as well as good indicators of future strategies, action, and performance. Consequently, you should learn to read them for one very important reason: to become a better and more profitable investor.
In Understanding Financial Statements, you’ll learn:
- What is the 10-K that the Securities and Exchange Commission (SEC) requires every public company to submit 60-90 days after the end of its fiscal year? How much data should you review? And how far back should you look? Find out now.
- Part I of the 10-K: Covers Business; Risk Factors; Unresolved Staff Comments; Properties; and Legal Proceedings. Questions you’ll need answers to include:
- What will you learn in this section of the 10-K?
- How can you spot significant changes in areas that matter?
- Are any legal proceedings important—or not?
- What material issues might affect the company’s position or revenue?
- Part II of the 10-K: Covers Market for Registrant’s Common Equity and Related Stockholder Matters; Selected Financial Data; Management’s Discussion and Analysis of Financial Condition and Results of Operation; Quantitative and Qualitative Disclosures about Market Risk; Financial Statements and Supplementary Data; Changes in and disagreements with Accountants on Accounting and Financial Disclosure; Controls and Procedures; and Other Information. Now that’s a mouthful right there! Here are some questions that you’ll get answers to in our Premium Report:
- What section of Part II is most important and why?
- How can you discover a firm’s ongoing growth strategy?
- What about any re-statement of financial statements by a company—does that matter?
- What questions about financial performance are most important to determining the company’s bottom line and its future patterns?
- How important is the pension section? What to look for that might indicate trouble for the company.
- Is the company’s debt reasonable and being used for the right purposes? Find out how to evaluate company debt.
- What about related-party transactions? When you should be suspicious about these activities.
- How do you evaluate executive compensation? Where to look for the details and how to determine if compensation is reasonable.
- Part III of the 10-K: Covers Directors and Executive Officers of Registrant; Executive Compensation; Security Ownership of Certain Beneficial Owners and Management; Certain Relationships and Related Transactions; and Principal Accountant Fees and Services. Questions you’ll get answered when you read our report now:
- What should you look for when reviewing the company’s directors and officers?
- Which factor might indicate a lack of drive, ambition, and innovation at the company?
- Do you know how to evaluate the status of company shares owned by executives? Find out now and what is a big red flag!
- Does the company’s auditing firm matter? Find out when it does matter.
- Part IV of the 10-K: Covers Exhibits, Financial Statement Schedules. Here are import questions that you’ll need answers to when evaluating a company to invest in:
- What should you look for on the detailed financial statements, to evaluate things that really matter?
- What ratio is most important for evaluating the company’s financials?
- Is the company paying interest on any loans—if so, what key factor should you look for?
- How should you evaluate the company’s bottom-line income? What to look for and what it means.
- What items on the company’s balance sheet are important and why?
- What is the most important line on the company’s cash-flow statement? And how should you evaluate it?
Understanding Financial Statements Premium Report includes some keen advice about how to read company financial statements so that you’ll be a better investor. This report is informative and educational—and you’ll become a whiz at reading company financial statements after following this advice a few times over and over.
This Premium Report Understanding Financial Statements is ready for you to access now, to discover all the things that matter in company financial statements—and what it all means for your investing decisions. Read it now!
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