Knowledge Hub
Intermediate 6 min read

Reading financial statements

The three statements and what each tells you about a business.

Every public company reports three core statements. Together they tell you whether a business is profitable, solvent, and generating real cash.

Income statement

Revenue minus costs over a period → profit. Watch revenue growth and margins (profit as a % of revenue).

Balance sheet

A snapshot of what the company owns (assets) and owes (liabilities). Too much debt relative to earnings is a red flag.

Cash flow statement

Where cash actually came from and went. Free cash flow — cash left after running and investing in the business — is what funds dividends, buybacks, and debt paydown.

All three are on every stock page in XMarketPro, free.

Educational content only — not investment advice. Put it into practice on any stock page in XMarketPro.