MEMBER'S LOGINX
| Invalid Username / Password | ||||||||
| Invalid Captcha | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- It's Time To Go Back To The Basics!
It's Time To Go Back To The Basics!
We hope our "Back To Basics" series brings about a change in investors' approach towards investing. The lost art of carefully studying a stock before making the purchase, we believe, needs to make comeback. Understanding the nuances of profit and loss accounts, balance sheets, and cash flow statements has always been pertinent, more now than ever before.
So, let's begin the journey to educate ourselves towards a fruitful investing experience. In this series articles, we will try to bring to you the basics of investing by acting as guideposts to unraveling the mystery behind the financial statements.
While soft qualitative metrics like corporate governance and management quality will continue to be clouded under subjectivity, our effort will be to arm you with a better understanding of the ways companies can be researched.
Getting Started
- Investing: Back to Basics
In this article we shall discuss a very important human tendency that every investor should undoubtedly not avoid.
- Key Constituents Of An Annual Report
What are the key constituents of an annual report?
- Where To Gather Information From?
In this article, we shall discuss how incentives can prove to be a double-edged sword
Profit And Loss Statements Of Non-Financial Companies
- Introduction To Financial Statements
An overview of the three key financial statements found in annual reports.
- Analysing Companies' Operating Expenses
Understanding and analysing the key operating costs.
- Discussion On Depreciation & Interest Charges
Learn about the two key depreciation methods and the interest coverage ratio.
- Dividends, Payout Ratios And Their Importance
A brief discussion on dividends, yields and gauging a company's dividend policies.
- Gauging A Company's Revenues
How to go about gauging a company's revenues?
- Discussion On Operating Margins
Operating margins - What they are and how they differ from one industry to another.
- Key Items Below The Profit Before Tax Level
A discussion on taxes, net profits and appropriation.
Balance Sheet Of Non-Financial Companies
- Introduction To Balance Sheets
A discussion on share capital, reserves & surplus and loans & borrowings - Key liabilities of any company.
- Current Assets - What Are They?
How to go about gauging a company's current assets.
- Dissecting The Investments On Books
What does the company do with the excess cash on books? Is it investing the same wisely? Get to know here.
- Discussion On Fixed Assets
What is the difference between gross fixed assets and net fixed assets? Get the answer here.
- Current Liabilities, Working Capital And Related Ratios
Understanding current liabilities, working capital and related important ratios.
- Financial Statements: Key Ratios
A brief discussion on some of the most important financial ratios that every investor must be aware of.
Cash Flow Statement
- What Are Cash Flows From Operations?
Is the company actually making money from its core operations? Get the answer to this question here.
- Relation Between Capital Structure And Cashflows
This section discusses how a company goes about funding its operations.
- Discussion On Cash Flow From Investing Activities
Where is the company investing its money? Is it acquiring plant and machinery or is it parking the same in other investments?
- Key Ratios Related To The Cashflow Statement
A discussion on some of the key ratios related to the cash flow statement.
Financial Statements Of Banks/ Financial Institutions
- Understanding The Profit & Loss Statement Of Banks/ Financial institutions
As compared to a manufacturing company, a bank/ financial institution reports its P/L statement differently. Learn about the same here.
- Making Sense Of A Bank's Balance Sheet
A brief overview on the 'capital and liabilities' side of a bank/ financial institution's balance sheet.
- Key Ratios Related To Banks' Balance Sheets
Some of the key ratios that an investor must know relating to a bank/ financial institution's balance sheet.
- Key Ratios Associated With Banks' P&L Statements
Read about some of the important parameters to gauge the performance of a bank/ financial institution.
- Making Sense Of A Bank's Balance Sheet - II
An overview on the asset side of a bank/ financial institution's balance sheet.
Get Your Own Copy!
To get a complete copy of our Back to Basics series - Investing ABCs, simply sign up to Equitymaster's free daily newsletter, The 5 Minute WrapUp. No payments are to be made. Happy Reading! Click here to download now...
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Multibagger Penny Stocks
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Best Small-cap Stocks to Buy
- Best Bluechip Stocks to Buy
- Guide to Penny Stocks
- How to Invest in the Share Market
- Warren Buffett - The Value Investor
- Pick the Best Multibagger Stocks
TRENDING TOPICS
Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407
Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com
LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.