Lesson

Financial Statements Visual Guide | Options Educator

Master income statements, balance sheets, and cash flow through visual infographics.

In this lesson

What Is Fundamental Analysis?

  • Fundamental analysis finds a stock's true value
  • Compare intrinsic value to market price
  • Use financial statements and ratios as your tools

The Three Financial Statements

  • Income Statement = How much profit
  • Balance Sheet = What you own vs. owe
  • Cash Flow = Actual money movement

Valuation Ratios: Quick Analysis

  • P/E shows how much you pay per dollar of earnings
  • Compare ratios to industry averages, not absolutes
  • PEG adjusts P/E for growth expectations

Quality Metrics: Beyond the Numbers

  • ROE shows how efficiently equity generates profit
  • Current ratio > 1.0 means bills can be paid
  • Compare margins within same industry

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