In this episode, hosts Andrew and Dave break down how to analyze an income statement using Nike as an example. They discuss the importance of financial statements, starting with revenue and profitability, and walk through the different sections such as net income, gross profit, and operating income.

They also emphasize the significance of earnings per share and provide insights on what to look for in the MD&A (Management Discussion and Analysis) section of company reports. The episode includes practical advice on identifying key metrics and potential red flags in a company's financial health.

00:00 Introduction to Investing for Beginners

00:07 Understanding Income Statements

00:31 Analyzing Nike's Financials

01:06 Key Metrics in Income Statements

01:32 Revenue and Profitability Insights

05:28 Management Discussion and Analysis (MD&A)

08:46 Gross Profit and Operating Income

18:05 Earnings Before Taxes and Interest

22:35 Earnings Per Share (EPS)

29:13 Conclusion and Final Thoughts

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

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What do Dave and Andrew recommend?

Andrew works really hard to find the best insights he can every single month at Value Spotlight. To see a sample of his previous work, go to stockwriteup.com.

Have questions? Send them to newsletter@einvestingforbeginners.com

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Market Call

Richard Orrell: March 10, 2025

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