Category Archives: Stock Picking
To a diligent investor, income statement analysis provides important insights into how effectively management is controlling expenses. Ratios are used to make rate comparisons of elements and data recorded on the statement.
Cash flow statements start with net income and then add back non-cash expenses such as depreciation, which deduct from net income but don’t result in cash changing hands. Cash flow statements consist of three sections:
There are many ways to categorize investors and their strategy, so in order to determine what appears most appropriate for your personal market goals and personality it helps to start out this section with a brief description