Learn how to analyze a company's health by reading its income statement, balance sheet, and cash flow statement. The foundation of intelligent investing.
Fundamental analysis is the process of evaluating a company's intrinsic value by examining its financial statements, management, competitive advantages, and the overall economy. For stock investors, the three key financial statements are essential tools.
Shows revenue, expenses, and profit over a period. Key metrics: Revenue, Gross Profit, Operating Income, Net Income, Earnings Per Share (EPS).
A snapshot of assets, liabilities, and shareholders' equity at a point in time. Key equation: Assets = Liabilities + Equity.
Shows cash inflows and outflows from operations, investing, and financing. Critical because profits don't always equal cash.
Net Income ÷ Revenue. Indicates how much of each dollar of sales becomes profit.
Net Income ÷ Total Assets. Measures how efficiently a company uses its assets to generate profit.
Total Liabilities ÷ Total Assets. Shows what proportion of assets is financed by debt.
Operating Cash Flow ÷ Revenue. Indicates how much revenue turns into actual cash from operations.
Enter key numbers from a company's financials to get a quick health score. (All fields required.)
This tool uses simplified ratios. Real analysis requires comparing to industry peers and historical trends.