Comments on: Understanding Financial Statements http://www.mint.com/blog/finance-core/understanding-financial-statements/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Fri, 19 Mar 2010 16:50:27 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Ravi Sharma http://www.mint.com/blog/finance-core/understanding-financial-statements/comment-page-1/#comment-38296 Ravi Sharma Fri, 02 Oct 2009 09:42:17 +0000 http://www.mint.com/blog/?p=2893#comment-38296 Yes! A good note for the investors to look into when the hard earned savings are to be enriched with capital gains. But a strong consideration for those who are not professionals in the manner to visualise the business (corporate) & financial performance of any of companies they are willing to invest & I strongly put here the Well-Established Concerns which are doing good in Income/Position Statement & Cash Flows but YOY lagging behind b'cause of critical analysis required for their product/service quality performance. There might be numerous factors for same viz., analysis on Leverage, Capicity Planning Enhancement, Capital Budgeting, Expenses to be planned in a manner to coin the best coupan rate ,Cost Of Capital reduced for the incremental Net Cash Flows resulting to the best output of their Net Present Values & Profitability Index for the Balanced Capital Equation starting from the iindividual projects & accomplishing the relative Required Internal Rate of Return. I think each company would definately require the Competitive Intelligence Advise for creating the Barometers not only for the projects but also for their SWOT Analysis to apprehend the Solvency & show the Real Performance Of The Company As Well. Thanks!!! Yes! A good note for the investors to look into when the hard earned savings are to be enriched with capital gains.
But a strong consideration for those who are not professionals in the manner to visualise the business (corporate) & financial performance of any of companies they are willing to invest & I strongly put here the Well-Established Concerns which are doing good in Income/Position Statement & Cash Flows but YOY lagging behind b’cause of critical analysis required for their product/service quality performance. There might be numerous factors for same viz., analysis on Leverage, Capicity Planning Enhancement, Capital Budgeting, Expenses to be planned in a manner to coin the best coupan rate ,Cost Of Capital reduced for the incremental Net Cash Flows resulting to the best output of their Net Present Values & Profitability Index for the Balanced Capital Equation starting from the iindividual projects & accomplishing the relative Required Internal Rate of Return.
I think each company would definately require the Competitive Intelligence Advise for creating the Barometers not only for the projects but also for their SWOT Analysis to apprehend the Solvency & show the Real Performance Of The Company As Well.
Thanks!!! ]]> By: Avery http://www.mint.com/blog/finance-core/understanding-financial-statements/comment-page-1/#comment-32903 Avery Fri, 17 Jul 2009 07:32:20 +0000 http://www.mint.com/blog/?p=2893#comment-32903 Your post is so useful,I never check know the company which I invest,sometimes I just buy recommendations from my friend.Surely,I will check the financial statement before investment in the future. Tks. Your post is so useful,I never check know the company which I invest,sometimes I just buy recommendations from my friend.Surely,I will check the financial statement before investment in the future.

Tks.

]]> By: Brian http://www.mint.com/blog/finance-core/understanding-financial-statements/comment-page-1/#comment-32683 Brian Fri, 03 Jul 2009 19:57:43 +0000 http://www.mint.com/blog/?p=2893#comment-32683 I agree with the writer. You should not invest in an individual stock unless you have examined its fundamentals, derived from financial statements. John has a point about the unpredictability of the market, but your decision to buy or sell should be based on whether you are getting a good price on the stock today. Ben Graham describes the stock market as a manic depressive friend who comes knocking on your door every day. Some days he is ecstatic about the prospects of a company and will pay much more than it is worth. There are the days when you sell. There are other days when he is depressed about the prospects of a company, but you know better because you are basing your decision on the financial statements and expected performance. These are the days when you buy. Right now Mr. Market is in a depressed mood. Prices are down as a result. Things could certainly get worse before they get better, and John's point about government regulation isn't lost on any investor. Regulation may make the recession deeper. But eventually, Mr. Market will become manic again, ready to pay any price because of the emotional inertia that accompanies a rise in stock prices. Remember the 1990s when companies traded at ridiculous PEs. These were the companies that were most likely to fail, but at the time they were thought to be most likely to succeed. At this time, we see something similar in the solar market. PEs are high, but future earning are expected to grow drastically. Some of these will be great companies, but others may fail. Be careful to examine all of the financial statements and annual reports before you invest in the individual equity! Brian I agree with the writer. You should not invest in an individual stock unless you have examined its fundamentals, derived from financial statements.

John has a point about the unpredictability of the market, but your decision to buy or sell should be based on whether you are getting a good price on the stock today.

Ben Graham describes the stock market as a manic depressive friend who comes knocking on your door every day. Some days he is ecstatic about the prospects of a company and will pay much more than it is worth. There are the days when you sell. There are other days when he is depressed about the prospects of a company, but you know better because you are basing your decision on the financial statements and expected performance. These are the days when you buy.

Right now Mr. Market is in a depressed mood. Prices are down as a result. Things could certainly get worse before they get better, and John’s point about government regulation isn’t lost on any investor. Regulation may make the recession deeper. But eventually, Mr. Market will become manic again, ready to pay any price because of the emotional inertia that accompanies a rise in stock prices.

Remember the 1990s when companies traded at ridiculous PEs. These were the companies that were most likely to fail, but at the time they were thought to be most likely to succeed. At this time, we see something similar in the solar market. PEs are high, but future earning are expected to grow drastically. Some of these will be great companies, but others may fail. Be careful to examine all of the financial statements and annual reports before you invest in the individual equity!

Brian

]]> By: Mack jackson http://www.mint.com/blog/finance-core/understanding-financial-statements/comment-page-1/#comment-32673 Mack jackson Fri, 03 Jul 2009 04:39:00 +0000 http://www.mint.com/blog/?p=2893#comment-32673 Thanks for sharing such great post, it will surely help people to get detailed info on financial statement. Thanks for sharing such great post, it will surely help people to get detailed info on financial statement. ]]> By: John http://www.mint.com/blog/finance-core/understanding-financial-statements/comment-page-1/#comment-32620 John Wed, 01 Jul 2009 12:53:46 +0000 http://www.mint.com/blog/?p=2893#comment-32620 Cool article - but it does assume you are investing long term based on fundamentals. Fundamentals may not matter in the short or medium term due to the manner in which the market moves. Often times the market moves like a 2 year old brat, not knowing what it wants at a given moment. Longer term investments, which I like, should be tied to fundamentals, but then there's government regulation to look at now. The government wants control of just about everything lately. Then there's recession - if you are holding on *too* long, you might be right back where you started. Cool article – but it does assume you are investing long term based on fundamentals. Fundamentals may not matter in the short or medium term due to the manner in which the market moves. Often times the market moves like a 2 year old brat, not knowing what it wants at a given moment.

Longer term investments, which I like, should be tied to fundamentals, but then there’s government regulation to look at now. The government wants control of just about everything lately. Then there’s recession – if you are holding on *too* long, you might be right back where you started.

]]> By: Joe http://www.mint.com/blog/finance-core/understanding-financial-statements/comment-page-1/#comment-32616 Joe Wed, 01 Jul 2009 08:10:23 +0000 http://www.mint.com/blog/?p=2893#comment-32616 Very informative post. More people should read this! Very informative post. More people should read this! ]]>