Financial Statements

Financial statements provide detailed information about a company’s income, expenses, assets, and cash flows. They help investors understand how the company is performing.

Main types include:

Income Statement: Shows profit and loss

Balance Sheet: Shows assets, liabilities, and equity

Cash Flow Statement: Shows cash inflow and outflow

These reports help investors evaluate the company’s profitability and financial health.

Example:

Before investing in a company, an investor may check its financial statements to see if it is making profits and managing money well.