Reading a income statement/ balance sheet

[devin0116]

Hi,

I'm new to reading a income statment and balance sheet. Can someone please teach me the basics, what should i look for, tips, etc? Thanks alot.



Devin

[gijoe9]

Hi Devin I looked this up on investopedia and here is a link to the results Income Statement If you go down on that page you will find links to several articles that may shed light on this for you. For myself I look for the gross income the net income and the net per share info. I look also at the expenses. Just the simple basic stuff for me unless I am digging a bit deeper then I look for the more specific stuff related to my inquirey like how much did shipping cost them this year or how much debt and what kind of debt do they carry or I try to figure out if they have cash and if so how much/cashflow. It is a matter of how you place value on a stock that will determine how you look at the income statement in some cases the income sheet will matter little (speculative buying) and in others it will mean a great deal (value investing) Good luck!
Joe

[devin0116]

Thanks alot Joe, it's of great help.

Devin