TSLA
Tesla
-- 410.440 NVDA
NVIDIA
-- 144.470 CRNC
Cerence
-- 19.330 QSI
Quantum-Si
-- 4.290 MSTR
MicroStrategy
-- 339.660 
Financial reporting knowledge (1): 10 minutes to quickly understand financial reports
Hi mooers, the Q4 earnings season has arrived. Taiwan's popular stock TSMC has announced on its official website that they will release their fourth quarter earnings report on January 14. The performance briefing will be held in the afternoon of the same day. Please schedule a live performance conference via the link below.
Until then, in order to make it easier for everyone to interpret earnings reports and performance meetings more clearly, this article will answer three questions in detail: What are earnings reports and performance meetings? Why should we read financial reports? How can I learn about a company through financial reports?
What are earnings reports and performance meetings?
A financial report is an aggregated report of multiple financial statements to reflect the company's economic behavior over a specified period of time. Performance will provide investors with a way to have zero distance contact with the company.
Why read financial reports?
To buy a company's stock is to invest in a company. We need to understand the business conditions of a company, estimate the value of the enterprise, and determine whether it is worth buying. There are many factors that influence the development potential of an enterprise, and the financial report provides an analysis sample. Through financial information, stock market traders can have a general understanding of the company's main business and changes, financial status, and data performance.
How can I learn about a company through financial reports?
Learn about the company's business model, financial situation, and business status through financial reports and performance meetings.
1. business model
From the share of the company's turnover, we can see the company's main business and pillar services, and also understand the performance of these businesses.
From the share of the company's turnover, we can see the company's main business and pillar services, and also understand the performance of these businesses.
For example, in TSMC's Q3 earnings report, it can be seen from the chart above that smartphones and high-performance computing are TSMC's core business, accounting for 46% and 37% of revenue. Among them, smart phones have steadily ranked first in revenue, while high-performance computing accounts for a relatively large share of revenue growth.
2. The state of the enterprise
Understanding the company's operating conditions and financial information from the three major statements is the most critical value point of financial reports. Among them, the three major statements include: balance sheet, profit and loss statement, and cash flow statement. From this, we can find out the overall profit status of the enterprise.
Understanding the company's operating conditions and financial information from the three major statements is the most critical value point of financial reports. Among them, the three major statements include: balance sheet, profit and loss statement, and cash flow statement. From this, we can find out the overall profit status of the enterprise.
As an example, it can be seen from TSMC's cash flow statement that its net cash flow was positive, while it also increased by more than 200% compared to Q2. In its third-quarter earnings report, TSMC expects gross profit margin to be between 51.5-53.5%. Driven by strong demand for the iPhone 12 series and large shipments of OEM A14 processors, TSMC's revenue for the fourth quarter of last year is also expected to exceed their expectations.
3. The financial situation
The three major statements of the company's financial report can reflect the company's profit status and debt situation, thereby helping investors to anticipate shareable profits, and at the same time, financial institutions judge the company's ability to repay debts. Earlier, TSMC had already announced revenue for the first two months of the fourth quarter. If December exceeds the average for the previous two months, then revenue for the fourth quarter will exceed 13 billion US dollars, once again setting a new high.
The three major statements of the company's financial report can reflect the company's profit status and debt situation, thereby helping investors to anticipate shareable profits, and at the same time, financial institutions judge the company's ability to repay debts. Earlier, TSMC had already announced revenue for the first two months of the fourth quarter. If December exceeds the average for the previous two months, then revenue for the fourth quarter will exceed 13 billion US dollars, once again setting a new high.
summed
Financial reports provide a means for business analysis. Investors can find answers or clues to their concerns from the company's financial reports. $Taiwan Semiconductor (TSM.US)$
Financial reports provide a means for business analysis. Investors can find answers or clues to their concerns from the company's financial reports. $Taiwan Semiconductor (TSM.US)$
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment