Fundamental Analysis & Financial Statements
Learn how to read company accounts, calculate financial ratios and understand market value through visual, formula-based guides.
How to read a balance sheet: assets, liabilities and equity
Understand what a company owns, what it owes, shareholder capital, working capital and the warning signs hidden in a balance sheet.
Read guide →Fundamental AnalysisHow to read a profit and loss statement
Read revenue, operating profit, margins, finance costs, exceptional items, tax and earnings per share without being misled by one quarter.
Read guide →Fundamental AnalysisHow to read a cash flow statement
Understand operating, investing and financing cash flows, free cash flow and why accounting profit can differ from cash.
Read guide →Fundamental AnalysisMarket cap, enterprise value and share price explained
Understand why a low share price does not mean a cheap company and how market capitalisation differs from enterprise value.
Read guide →Fundamental AnalysisValuation ratios: P/E, P/B, P/S, EV/EBITDA and PEG
Learn the main valuation multiples, their formulas, appropriate use cases and common traps.
Read guide →Fundamental AnalysisProfitability ratios: margins, ROE, ROCE and ROA
Measure pricing power, operating efficiency and returns earned on shareholder and business capital.
Read guide →Fundamental AnalysisLiquidity ratios: current ratio, quick ratio and cash ratio
Assess whether short-term assets can cover short-term obligations and understand why higher is not always better.
Read guide →Fundamental AnalysisLeverage and solvency ratios: debt, coverage and repayment capacity
Analyse debt-to-equity, net debt, interest coverage, debt/EBITDA and debt-service ability.
Read guide →Fundamental AnalysisEfficiency ratios and the working-capital cycle
Understand asset turnover, inventory days, receivable days, payable days and cash conversion cycle.
Read guide →Fundamental AnalysisPer-share, growth and earnings-quality ratios
Learn EPS, book value per share, CAGR, operating cash conversion, dividend payout and sustainable growth.
Read guide →Fundamental AnalysisComplete financial-ratio formula guide
A practical reference for valuation, profitability, liquidity, leverage, efficiency, cash-flow and per-share formulas.
Read guide →