A balance sheet provides insights into a company’s assets, liabilities, and shareholder equity. Learn how to assess a firm’s financial stability and long-term sustainability using this key financial document.

A P&L statement breaks down revenue, expenses, and net profit, helping investors gauge business performance. This chapter explains how each component—from gross profit to EPS—impacts valuation.

The cash flow statement tracks how a company generates and spends cash across operations, investments, and financing. Understanding these flows helps investors assess liquidity, financial discipline, and long-term viability.

Financial ratios simplify company comparisons by measuring profitability, liquidity, leverage, and valuation. This chapter covers key metrics like ROE, P/E ratio, and debt-to-equity to help you make informed investment decisions.

Gross profit margin reveals how efficiently a company produces goods and services by measuring profits after deducting direct costs. This chapter explains its importance in evaluating a company's core business strength.

Operating profit margin indicates how well a company manages its costs and operations before interest and taxes. Learn how this ratio helps assess a company’s financial health and operational effectiveness.

Net profit margin shows how much of a company’s revenue turns into actual profit after all expenses. This chapter breaks down its significance in measuring a business’s overall profitability and financial sustainability.

ROA evaluates how effectively a company utilises its assets to generate profits. Understand why this ratio is crucial in comparing companies across industries and assessing management efficiency.

Return on Equity (ROE) shows how efficiently a company generates profit using shareholders' funds. This chapter explains why a high or low ROE matters when evaluating business performance.

These liquidity ratios show a company’s ability to meet short-term obligations. This chapter explains how to use them to assess financial stability and operational efficiency.

The Debt to Equity ratio reveals how much a company relies on borrowed funds versus shareholder equity. This chapter helps you understand the ideal balance for financial health.

This ratio tells you whether a company can comfortably pay its interest obligations. Learn how to interpret it to avoid companies struggling with debt burdens.

Working capital represents the funds available for day-to-day operations. This chapter explains how positive or negative working capital impacts a business’s ability to run smoothly.

The Price/Earnings to Growth (PEG) ratio adjusts the P/E ratio for a company's growth rate. This chapter shows how PEG helps in evaluating if a stock is reasonably valued.

The P/B ratio compares a company’s market value to its book value. This chapter explains how it’s used to spot undervalued or overvalued stocks, especially in asset-heavy sectors.

This ratio compares a company’s stock price with its revenue per share. Learn how it helps in valuing companies—especially those with low or inconsistent profits.