Joe Lan, CFA is a former financial analyst for AAII.


Discussion

Steven from IA posted over 2 years ago:

For me this is very helpful and interesting. I have read remedial books and I still get completely befuddled by the 100 page reports of real corporations. It is a learning process. Every time I read about this something more sticks to my brain. I look forward to receiving the print magazine. Thanks!


Gerald from GA posted over 2 years ago:

I hope that in future articles you will highlight the areas of the income statement that include great differences between cash accounting and accrual accounting. Simply looking at an income statement without understanding the areas that can increase or decrease net income without having an impact on cash flow can cause one to completely misunderstand the position and prospects of a corporation.


Ray from MT posted over 2 years ago:

Much reference in earnings reports is given to EBITDA as a guideline in evaluating how a company is doing. Charlie Munger ( Warren Buffett's partner in Berkshire Hathaway) describes EBITDA as (ahem) "bullshit earnings."
So, considering the above comment by CM, what is your interpretation of EBITDA, EBIT as to say free cash flow or whatever else?

(statement above by CM is found in"Poor Charlie's Almanack, p120. 2nd Edition)


Curtis from NC posted over 2 years ago:

I appreciate your efforts and learned something from them. However, it would have been more instructive had you continued discussing Kellog or instead of using Kellog's three statements generated some reasonable ones for the widget maker. It would have then been possible to go back and re-look at the statements with greater insight and more assurance that my understanding was correct.


Adam from IL posted over 2 years ago:

helpful article!


Robert from TN posted over 2 years ago:

I go over financial statements from accounting texts and 10k forms from several companies in which I have stock. Your review was very nice.


Michael from Illinois posted over 2 years ago:

Good information. I'm looking forward to the future articles on this subject.


Steven from IA posted over 2 years ago:

Very interesting discussion of how the three statements interact. I was once stumped with how depreciation would be an addition to the cash flow sheet and it finally occurred to me that it is negative on the income sheet. Like a mirror image. I am tempted to make a schematic or chart of what this article brings to light.


Pranav from NY posted over 2 years ago:

www.calcbench. com - It's free

I am an AAII member. I'm also the co-founder of a financial data website that gives people access to fundamentals. Our difference? We are using the XBRL standard that reports the financials as the filing companies report them. NOT as a third party vendor interprets them. We also give you the ability to share information among a team that you might create. This is just for starters. Again - www.calcbench.com

Best part. We are just getting started.


Pavan from MI posted over 2 years ago:

Good information. A great resource for this is "The Interpretation of Financial Statements" from the original guru of security analysis, Benjamin Graham.

Less than a 100 pages and very clearly explained.

http://www.amazon.com/Interpretation-Financial-Statements-Benjamin-Graham/dp/0887309135/ref=sr_1_1?ie=UTF8&qid=1326384600&sr=8-1


Sue from TX posted over 2 years ago:

Very understandable info. Thx.


Roland from MA posted over 2 years ago:

This article is business school accounting and finance 101 made simple. I find it very refreshing especially on cash flow analysis and how all the other statements tie in together.
Looking forward for the next follow up article.
Roland Kyei Atupem, Boston , MA


Roland from MA posted over 2 years ago:

This article is business school accounting and finance 101 made simple. I find it very refreshing especially on cash flow analysis and how all the other statements tie in together.
Looking forward for the next follow up article.
Roland Kyei Atupem, Boston , MA


Roland from MA posted over 2 years ago:

This article is business school accounting and finance 101 made simple. I find it very refreshing especially on cash flow analysis and how all the other statements tie in together.
Looking forward for the next follow up article.
Roland Kyei Atupem, Boston , MA


Ronald from LA posted over 2 years ago:

The article was very informative and helpful. I look forward to the future articles.


John from VT posted over 2 years ago:

Clear, concise, thank you


Sandra from CA posted over 2 years ago:

Thanks so much for delving into this area! For those interested in truly understanding fundamentals, your presentation is great! Look forward to all the future ones. Thanks again.


Juan Ortega from TX posted over 2 years ago:

I like to know what keys in the company's finances are the best signals to pick the winners in the stock market within a reasonable time frame.


J Padulo from NJ posted over 2 years ago:

Great series! Have you thought of consolodating them into a single primer for those of us who would like a "Ready Referance" - Also you might want to include the list of 16 financial ratios from the September issue.

Just a thought


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