Financial statements give you a toolbox to analyze a company’s financial health. 🧰

Let’s summarize some of the most important takeaways you can use as an investor!

The income statement shows you how a company’s revenues & profits change over time.

A company with profits that are increasing each quarter could be a good investment because they are growing the business sustainably, which is great for long-term investors! 📈

The balance sheet shows you what a company owns and owes across time.

In general, look for companies with more assets than liabilities.

Investors consider these companies to have a “strong” balance sheet, and therefore be in good financial health 🏥

The cash flow statement shows how cash moves in and out of a company over time.

In general, look for companies with positive operating cash flow, and that seem to be making smart investments for its future.

With the numbers from companies’ financial statements, alongside other important metrics like P/E ratio, you can compare companies against each other to decide which ones to invest in.

Companies release new financial statements every quarter, so try to stay on top of your investments’ financials.

You can check financial statements right on Bloom – try it with Apple