Demystifying Financial Statements
Learn how the Income Statement, Balance Sheet, and Cash Flow Statement connect to paint a complete picture of business health.
Collection Catalog
Income Statement
The Income Statement (or Profit and Loss statement) summarizes a company's revenues, expenses, and profits over a specific period, showing its financial performance.
Balance Sheet
The Balance Sheet provides a snapshot of a company's financial position at a specific point in time, detailing its assets, liabilities, and shareholder equity.
Cash Flow Statement
The Cash Flow Statement tracks the actual inflow and outflow of cash within a company over a period, categorized into operating, investing, and financing activities.
Revenue
Revenue (or Sales) is the total amount of money brought in by a company's operations, representing the top line of the income statement.
Net Income
Net Income (or net profit) is the total profit of a company after deducting all expenses, taxes, interest, and depreciation from total revenue.
Free Cash Flow
Free Cash Flow (FCF) is the cash generated by a company's operations minus its capital expenditures, representing the cash available for distribution or expansion.
Retained Earnings
Retained Earnings are the cumulative net profits that a company keeps rather than paying out as dividends, reinvested back into the business for future growth.