Financial Analysis. Lesson 6. Financial Statements Analysis
<ol>
<li>Financial statements provide essential insights into a company's financial health.
</li>
<li>Income statement details a company's revenues, expenses, and net income.
</li>
<li>Balance sheet shows assets, liabilities, and shareholders’ equity at specific times.
</li>
<li>Cash flow statement tracks cash inflows and outflows in operating activities.
</li>
<li>Gross profit margin measures profit after deducting cost of goods sold.
</li>
<li>Operating margin assesses profitability by subtracting operating expenses from revenue.
</li>
<li>Net profit margin calculates the percentage of net income from total revenue.
</li>
<li>Return on assets (ROA) evaluates efficiency by measuring returns on total assets.
</li>
<li>Return on invested capital (ROIC) shows returns generated from invested capital.
</li>
<li>Debt-to-asset ratio compares total debt to total assets, indicating leverage.
</li>
</ol>
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Technical Examples:
<ol>
<li>Income statement analysis reveals revenue sources and net income over time.
</li>
<li>Using ROA, analysts evaluate how efficiently assets generate profits.
</li>
<li>Debt-to-asset ratio highlights a company’s debt relative to its assets.
</li>
</ol>

**Financial Analysis. Lesson 6. Financial Statements Analysis**

1. **Financial statements** provide essential insights into a company's financial health.
    
2. **Income statement** details a company's revenues, expenses, and net income.
    
3. **Balance sheet** shows assets, liabilities, and shareholders’ equity at specific times.
    
4. **Cash flow statement** tracks cash inflows and outflows in operating activities.
    
5. **Gross profit margin** measures profit after deducting cost of goods sold.
    
6. **Operating margin** assesses profitability by subtracting operating expenses from revenue.
    
7. **Net profit margin** calculates the percentage of net income from total revenue.
    
8. **Return on assets (ROA)** evaluates efficiency by measuring returns on total assets.
    
9. **Return on invested capital (ROIC)** shows returns generated from invested capital.
    
10. **Debt-to-asset ratio** compares total debt to total assets, indicating leverage.
    

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**Technical Examples:**

1. **Income statement** analysis reveals revenue sources and net income over time.
    
2. Using **ROA**, analysts evaluate how efficiently assets generate profits.
    
3. **Debt-to-asset ratio** highlights a company’s debt relative to its assets.

Financial Analysis. Lesson 6. Financial Statements Analysis.