If you’ve ever looked at a company’s financial statement and felt lost in the numbers, you're not alone. Terms like revenue, operating income, and net profit ...

A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top ...

Intuition and ambition can spark a business, but they’re not enough to sustain one. To make sound decisions, owners need a ...

Cash flow is, understandably, one of a company’s most significant concerns. To stay on top of this vital financial metric, business owners rely on accurate, consistent cash flow statements. These ...

Cash flow provides important context to information that might not be apparent on other financial statements like a balance sheet or income statement. If a business makes a sale to a customer, that ...

When it comes to assessing a company, Warren Buffett says balance sheets are a good place to start. "I spend more time looking at balance sheets then I do income statements," he said. "Wall Street ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...