Financial Statements Articles

Using Book Value to Judge a Stock’s Worth

June 2015 by Charles Rotblut
The price-to-book-value ratio is a popular valuation measure among value investors, though most combine it with additional indicators. Read more »

Valuing a Company Based on Its Revenues

October 2014 by Charles Rotblut
The price-to-sales ratio is considered to be one of the “cleanest” valuation multiples; it is also more tied to profit margin than you may realize. Read more »

Valuation Ratios: The PEG Ratio

June 2014 by Joe Lan
The PEG ratio factors in a company’s growth into its valuation, allowing investors to compare companies with different rates of growth. Read more »

Calculating Intrinsic Value With the Dividend Growth Model

March 2014 by Joe Lan
An estimate of a dividend-paying stock’s fair value can be calculated using accessible data and assumptions with this model. Read more »

Introduction to Stock Valuation: The Price-Earnings Ratio

September 2013 by Joe Lan
A close look at the most widely used valuation measure, and an explanation of how relative price-earnings ratios can provide more insight as to whether a stock is mispriced. Read more »

Taking a Qualitative Look at a Prospective Stock’s Figures

May 2013 by Joe Lan
A qualitative assessment of financial data reveals more about a company than what can be gleaned from the financial statements alone. Read more »

Analyzing Growth Rates

March 2013 by Joe Lan
Growth can bring more money into a company and drive the stock price higher. Find out how to calculate and analyze growth rates. Read more »

Breaking Down ROE Using the DuPont Formula

December 2012 by Joe Lan
The DuPont formula identifies the factors that determine how effectively management is generating profits for shareholders. Read more »

16 Financial Ratios for Analyzing a Company’s Strengths and Weaknesses

September 2012 by Joe Lan
These 16 ratios enable investors to compare the fiscal strength, profitability and efficiency of two or more companies. Read more »

The Cash Flow Statement: Tracing the Sources and Uses of Cash

July 2012 by Joe Lan
The cash flow statement links the balance sheet and the income statement, showing how a company generated and spent its cash. Read more »

The Balance Sheet: Assets, Debts and Equity

May 2012 by Joe Lan
The balance sheet provides a snapshot of a company’s assets and liabilities at a certain point in time and gives insight into a company’s financial strength. Read more »

The Income Statement: From Net Revenue to Net Income

March 2012 by Joe Lan
The income statement shows a company’s sales, expenses and profits. Learn how to analyze the income statement and spot important trends. Read more »

Introduction to Financial Statement Analysis

January 2012 by Joe Lan
The first article in this new series explains what the income statement, balance sheet and cash flow statement are and how they are interconnected. Read more »

Four Basic Steps to Gauging a Firm's True Financial Position

October 2003 by Jay Taparia
A basic understanding of a company's "true" financial position can be gleaned by starting with a company's cash flow statement. Four initial steps you can use to analyze a firm's financial statements. Read more »

The Big Pension Plan Hole and What It Means to Investors

July 2003 by Edwin Everett
Stock market declines and low interest rates have taken their toll on corporate pension plans. What companies do about it could affect the market. Read more »