Fundamental Stock Analysis and Financial Statements

For many stock investors, digging into the primary financial statements of income, cash flow, and balance sheet is a bridge too far believing them to be too complex and the preserve of those with an accountancy degree. In this module, we aim to prove this assumption false, as I believe you do not need any particular qualifications to read and interpret such statements with confidence as we walk you through all of the key lines of data, explaining each in detail and what it means. Remember, these documents reveal the inner workings of the company, and therefore are of immense value to those prepared to spend the time understanding how to read and interpret the financial reports and data.

What you will find, is that if you are prepared to apply this knowledge and study them regularly, you will be surprised how quickly you become at ease with the numbers, and from there draw straightforward and meaningful conclusions about the company concerned and hence the stock price. Success in stock investing or trading is about blending the pieces of the puzzle together, and in this case, it is the marriage of the technical picture alongside the fundamentals. So, be brave and dive in. You will be surprised at how fast you become an expert stock analyst!