Income Statement Analysis for Beginners

With so many companies releasing their annual reports in the upcoming weeks and months, it's a good time to review some of the income statement lessons you need to know; financial ratios that can help you make sense of the business and why it may or may not be attractive.

Someone forward you this email? No Sweat! Sign up here to get your own If you're having trouble viewing this email, click here Follow Us Income Statement Analysis for Beginners With so many companies releasing their annual reports in the upcoming weeks and months, it's a good time to review some of the income statement lessons you need to know; financial ratios that can help you make sense of the business and why it may or may not be attractive. Joshua Kennon Investing for Beginners Expert Income Statement Analysis for Beginners Learning how to analyze an income statement and calculate basic financial ratios is one of the most important skills for an investor or manager.  Take a step-by-step tour through the income statement in this 30+ page special I wrote to help you pick up many of the basics you'd learn in a college course on the topic. READ NOW How to Calculate and Analyze Cost of Goods Sold You can understand a lot about a potential investment by analyzing the percentage of its revenue that goes to cost of goods sold, or COGS.  This walkthrough shows you how to make sense of it from a company's income statement. READ NOW Working Capital Per Dollar of Sales A particularly useful efficiency ratio, working capital per dollar of sales can be a great way to compare multiple firms within an industry or sector. READ NOW How to Calculate Gross Profit Margin Gross profit margin ratios are one of the best ways to understand the economics of a business in which you are considering making a new investment, especially when comparing it to its nearest competitors as truly superior companies tend to have much larger gross margins for a variety of reasons.  Here's a breakdown of how to calculate the metric and where to find it on an income statement. READ NOW Featured Articles • Can My Bank Close My Checking Account on Me? • 17 Things to Make Instead of Buy • 10 Spots You’ll Be Seeing in Super Bowl 2016 • 10 Spices and Seasonings You Can Make Yourself • College Financial Aid and Presidential Politics • Zika Virus Updates and Tips if You're Worried About Your Travel Plans • Make Real Vanilla Extract for the Price of Imitation • How to Make Tomato Sauce Without All the Work Advertisement About Investing for Beginners  |  Follow Us You are receiving this newsletter because you subscribed to the Investing for Beginners newsletter. If you wish to unsubscribe, please click here 1500 Broadway, 6th Floor, New York, NY, 10036 © 2015 About.com - All rights reserved. Privacy Policy.

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