How does one know if a company is making good money, that can grow and help the company increase its profits for a long period of time? By analysing the income statement of said company.
How does one analyse an income statement? Well, you start by understanding what an income statement is, and how to read it first, and then you can move on to analysing it.
I’ve created this YouTube playlist that includes two different videos, from different creators, that explain what an income statement is, why it’s important and how to read it.
After those two videos, I’ve added a couple of very short videos that, individually, explain some of my favourite ratios that I use when I want to know whether a company has good and attainable profitability.