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PDF Editor FAQ

What is the easiest way to learn how to analyze financial statements?

The easiest way to learn how to analyse financial statements is by comparing 3–4 like for like companies (in the same industry, similar market cap) by annual report.And look at every comparable metric on these statements.Write it all down. Investigate what it means.You'll start your true learning experience the moment you realize, 3 of the 4 firms report one particular metric while the 4th firm does not..Hmm…Why does this firm not disclose this particular metric? And it's direct competitors do? This is where your nose for BS will get developed. Firms will always try to find clever loopholes to report their bullshit. Internal and external auditors are often incapable of finding these pots with gold..

After seeing the financial condition of many doctors, I regret coming into the MBBS. Should I consider changing my field?

On the very first day of my MBBS course in college, we had an orientation program in which we were called with our parents in the auditorium. It will always be one of the memorable days of my life.But on the very same day, I heard a speech from one of our professors which changed my thoughts.He told us that if you have entered this field because you want money and you think that there's lots of money in this profession then leave. Leave this auditorium and leave this course. Its not late yet.You can always switch.We all were like how can he ask us to leave so easily when we know we have worked hard and are now here.I understood this statement after some time when I saw how a hospital works and how a doctor works.A doctor works for money but it is not his or her sole aim to come to medical college.Behind the money that he charges, there is around 10+ years of hardwork that is not seen.There are many other ways to earn a decent amount of money.Don't come to this profession for money. You'll regret.Come and stay only if you have interest in medicine and really want to help people with compassion.

What is balance sheet and how to read that one?

A balance sheet is one of the components of the financial statements which represents the financial condition of the company. It talks about economic resources and claims against the company.It consists of Assets on one side. Liabilities and Equity on the other. In a generic sense, what it says is, how much of my own money have I put into the company (equity) and how much of it is through borrowing and debt (liabilities).How have I used the money I have with me (equity and debt) in order to buy the assets? Hence, Assets = Liabilities + Equity.

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