Read and interpret financials with statement analysis, ratios, DuPont, ROIC, free cash flow, depreciation, and working capital.
10 guides in this collection
Learn how to build a three-statement financial model that links the income statement, cash flow statement, and balance sheet through net income, depreciation, working capital, and capital expenditures.
Learn how to read the income statement, balance sheet, and cash flow statement together to assess a company's profitability, financial health, and cash generation.
Learn how to calculate and interpret key financial ratios for liquidity, profitability, and leverage using a company's financial statements.
Learn how DuPont analysis breaks ROE into profit margin, asset turnover, and the equity multiplier to show where a company's returns come from.
Learn how to calculate ROIC from financial statements and use the ROIC-WACC spread to determine whether a company creates or destroys value.
Learn how to calculate free cash flow from financial statements and why it matters more than net income for valuation and capital allocation.
Learn how straight-line and accelerated depreciation work, how they affect reported earnings and taxes differently, and why depreciation matters for free cash flow and valuation.
Learn how to calculate net working capital and operating working capital from a balance sheet, understand what drives working capital changes, and see how those changes affect cash flow.
Learn how to calculate the cash conversion cycle from financial statements and understand how DSO, DIO, and DPO determine how long cash is tied up in operations.
Learn how to calculate leverage ratios, coverage ratios, and debt capacity to assess whether a company can support its debt load through normal conditions and downturns.