Where did the money go? 1st look at cash flow, Part 4 of 4. The cash flow statement reveals vital information. It tracks the cash received as well as the cash consumed by the company. Knowing the comings and going of cash helps investors understand the pulse of corporate finances. A look at cash flow in our introductory discussion of financial statements for people new to investing.
4 Part series Basic Numbers introduces financial statements to novice investors. Balance Sheets, Income Statements and Cash Flow are introduced at a basic level.
Getting to the bottom line on financial statements, Getting to the bottom line on income statements, part 3 of the 4 part White Top View series discussing basic financial statement information for novice investors. Links to the four parts of the White Top View Series, Basic Numbers are at the end of this post. The income statement reports how much revenue came in during the reporting period. On an annual report that period is a year but for the quarterly reports the numbers relate to the past three months.
balance sheet numbers balance part 2 of the 4 part White Top View Series, Basic Numbers introducing financial statements for people new to investing. Balance Sheets show me the money! The balance sheet also gets called a Statement of Financial Position. This is the report for anyone that has shouted “show me the money”! The balance sheet lists what is owned, what is owed and the owners share or equity. The list of stuff owned always begins with cash and other liquid assets grouped as Current Assets. Current assets are those that are or could be turned into cash within one year.
The keys to a treasure trove of investing information is understanding financial statement basics. With that basic skill, investors can ask companies to, “show me the numbers!” Financial statement basics help those new to investing get comfortable looking at and using financial statements. This is Part 1 of the White Top View Series, Basic Number Reading that provides an introduction to reading financial statements.
Dangerous Dividends Flash Warning Signs. Uses Renegade Energy as an example of a company with multiple indications of a high risk dividend. Investors must notice when dangerous dividends flash their warning signs! Dangerous dividends are ones that attract income seeking investors with high but unsustainable returns. Investors can avoid the disaster of losing both the dividend and equity by knowing the warning signs of dangerous dividends.