The TraderLion Podcast Financial Statement Analysis for Beginners - Brian Feroldi
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Jun 17, 2024 Brian Feroldi, an expert in financial statement analysis, dives into the fundamentals of understanding balance sheets, income statements, and cash flow statements. He highlights the difference between GAAP and non-GAAP accounting using Walmart as a case study. Listeners learn the importance of analyzing historical data to spot trends and assess a company's growth potential. Feroldi emphasizes evaluating qualitative factors such as management quality and provides insights on balancing risk and reward in long-term investing strategies.
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Accounting Is The Language Of Business
- Accounting is the language of business and is essential to understand company performance and stock direction.
- Mastering financial statements improves investing, business decisions, and career opportunities.
Use The Balance Sheet As Net Worth
- Use the balance sheet to calculate a company's net worth by subtracting liabilities from assets to get shareholders' equity.
- Remember the balance sheet must always balance: assets = liabilities + shareholders' equity.
Read The Income Statement Like A Budget
- Treat the income statement like a budget: revenue minus expenses over a period equals profit or loss.
- Check the time period (quarter or year) before comparing numbers across reports.