Financial Statements

• Balance Sheet
• Income Statement
• Cash Flow Statement
• How are the 3 financial statements connected?
• Example: Depreciation and Amortization

Working Capital Ratios

• Remember that one ratio does not tell the full picture, you need to look at different ratios and ask multiple questions to get a deeper understanding
• Current Ratio/Quick Ratio
• Accounts Receivable Turnover Ratio
  • Shows how fast they’re able to receive money
• Inventory On-Hand Turnover Ratio
  • How efficient a company is at turning over their inventory
  • How long inventory stays in your possession vs. being sold

• Sales Turnover Ratio