F Financial Statement And Profit & Loss Statement: Fill & Download for Free

For any professional financial, this is important to find out how to analyze a company’s financial statements effectively. This needs an understanding of 3 important areas:Economic characteristics of the industry where the firm is operatingFinancial statements structureFirm strategies used to differentiate it from competitorsHere are the steps in developing an effective analysis of the financial statements:a. Identification of industry’s economic characteristicsb. Identification of strategies of a companyc. Assessment of the quality of the financial statements of companyd. Analysis of current profitability and riske. Preparation of forecasted financial statementsf. Valuing the firmYou can learn how to build a financial model quickly and efficiently by playing keySkillset educational games. Learn and do at the same time, collect kudos, see your efficiency score increasing with keySkillset (just google it)

Stocks markets on the surface look like a very simple game; bet on the right stocks, buy low, sell high, and you end up making profit. Veterans of the stock market will tell you this is just an illusion, and a lot of homework must be done before you actually find success in the stocks. The process of buying stocks in today’s day and age is very simple and an easy process. Understanding what to buy requires a lot of time, knowledge, extensive reading and patience. Since you are a beginner, it is important to get yourself familiarised with the basics of stock investing. This can be done in the following ways:A) Read books written by stock market veterans to gain in-depth knowledge about the markets. You can start with 3 most important books that I feel any stock market enthusiast should have on his/her bookshelf. They are:a. One up on Wall Street -Peter Lynchb. Common stocks Uncommon Profits- Phil Fisherc. Intelligent Investor -Benjamin GrahamB) Secondly, you need to familiarise yourself with the day-to-day activities in the stock markets, terms that are commonly used, companies that are talked about, impact of macroeconomic variables on the stock markets, etc. To do so, you must make reading newspapers a regular activity. Also watch news channels which have dedicated tv shows for stock market investing.C) Then you can start reading quarterly financial statements and annual reports of companies that you are interested in. This will help you get familiar with financial ratios and terms used in everyday trading.D) There are many good investing/ trading groups you can join across various social media outlets which will help you learn/network with other investors.Now that you have got a basic understanding of the markets, the next and most important step is to choose the right stocks. The challenge is to a chose a winner among innumerable choices available in the stock markets. The task is the bet on the future potential of a company, based on historical and present-day data. There are certain parameters which are important to differentiate quality stocks from the rest. Some of them I have enlisted below:a) Quality of the managementb) The company’s business modelc) Historical track recordd) Debt-to-Equity ratioe) The sector the company performs inf) Valuationg) FII/DII buyingh) ROE &ROCEi) Moat or competitive advantagej) Free Cash flowk) Interest coverage ratioThe above given criteria would help you select a fundamentally strong stock to bet on. Remember, no strategy is fool proof. You have to learn and understand as you start investing in the stock markets. Make your own rules and strategies based on what your end-goal is, and evaluate them periodically. Don’t get swayed by emotions, and don’t blindly follow the herd. Initially invest only as much as you can afford to lose. Begin small, and scale up gradually. Good luck!!

There are few things which many CA students who are stock market enthusiasts do wrong. They try to learn the technical charts and more complicated stuff and make money. Here are few things which one must try to do instead:#1] Learn to read the financial statements:In fact the articleship phase is the right time to learn how to study the financial statements and results of a company. This is because all the things you study in your books and subjects like ‘Financial Management’ and ‘Accountancy’ are implemented right there in studying and analyzing a balance sheet of a company.Let me super-simplify things for you. Companies listed on a stock exchange have to submit their financial statements in each quarter. This would mean they would submit their results every three months. Market always reads the result and reward the stock or punish it as the case may be. Trust me when I say, articleship is a wonderful period in learning how to read and analyse the Balance Sheet and the results of the company. Here are few steps to follow:Search for the result calender and you will get the dates on which various companies will be posting their results.Download the results of the companies either from their respective websites or from the stock exchanges (BSE Ltd. (Bombay Stock Exchange, National Stock Exchange of India Ltd.)Check for the topline growth and the bottomline growth of the company. Topline would mean sales and bottom line would mean profit.Compare the results of the company. The comparison may be on Q-O-Q basis or Y-O-Y basis. Let me also explain these terms. Q-O-Q would mean Quarter on Quarter basis. In other words, we compare the results of a company of the current quarter with the results of the company of the previous quarter of the same year. Companies which are in the Information Technology sector are ever growing and hence it would be more meaningful to compare their results on Q-O-Q basis. However, there are automobile companies where their third quarter is the best quarter due to festive season and hence comparing the numbers on Q-O-Q basis would be meaningless. These are compared on Y-O-Y basis. Which would mean the results of this quarter will be compared with the results of same quarter of the previous financial year.See how markets react to the results of these stocks and try to understand the reason behind it. Almost every stock in the market is analysed on the basis of the results. Hence, it is not only important to understand the results but also a fun thing while one is pursuing articleship.#2] Try to invest the money in small amount:Articleship is a phase where you must not indulge in activities like F & O or even traps like intraday trading. Both these things require extreme conviction and time and a student would lack both these things.Try to invest smaller amounts through mutual funds. Remember it is always wise to start as early as possible. Time is a crucial thing and don’t waste it by starting the investment later. Remember that stock market can not be timed. Hence, do not wait for the opportunity, instead grab one!Try to invest money in IPOs which are decently valued and would probably give you listing gains. This way you would be playing safe and would also love the way your money grows.#3] Read and watch business channels:Read and understand the basic terminology. Learn the meaning of terms like ‘Stop Loss’, ‘PE ratio’, ‘Book value’, ‘EPS’, etc. There are many business channels and watching them would only help. Keep a track of the triggers and changes happening all around and see the impact of these changes on the stock prices. Market reacts on rumors and news. For example:The recapitalisation programme showed a jump of 40–50% in the banking stocks.[1]The Bharatmala programme will be seen highly postive for infrastructure stocks. [2]Antidumping duty on steel casued metal stocks to rally.[3]It is really fun to learn all these stuff. The earlier the better. So use your time wisely.Footnotes[1] PSU banks rally on recap plans; add Rs 1.1 lakh cr to m-cap, PNB gains most[2] Buy these 3 stocks to ride on Narendra Modi’s Bharatmala infrastructure boost[3] India to slap anti-dumping duty on steel import from 6 nations