How to learn about a business?

01:26 Mins Read

Learning about a business is one of the first steps in investment analysis. How do you go about doing this?

Transcript

How to learn about a business? There are many reports and documents that can help you learn more about a business. The incorporation documents tell you more about the formation of the company. Then, there are the financial statements of a company. The profit and loss statement gives you a better idea of the income earned and the expenses incurred by the company. The balance sheet gives you an insight into the company’s assets and liabilities. To learn about the cash generated and used by the business, you can look at the cash flow statement. That’s not all. Each year, companies prepare an annual report. This report gives shareholders comprehensive insights into the company’s activities and financial performance. You can also make use of analyst reports, prepared by professional third-party experts. All of these documents and reports are publicly available. We’ll get into the details of these reports in the upcoming lessons and modules. Continue with Smart Money to learn more.