【Financial Report 101】The big three financial statements, easy to understand with just one look, and learn in one go!

Last week felt like a "Chinese New Year Gala" for the stock market, with hot stocks like tesla $Tesla (TSLA.US)$ and apple $Apple (AAPL.US)$ releasing their financial reports one after another, sparking discussions among investors! GME $GameStop (GME.US)$ and AMC $AMC Entertainment (AMC.US)$ are once again fueling a new wave of enthusiasm. In the just-released alibaba $Alibaba (BABA.US)$ The financial report shows that the monthly active users of Taobao Special Edition exceed 0.1 billion, and will compete with PDD for market share. Next up is Nokia $Nokia Oyj (NOK.US)$ and Snap $Snap Inc (SNAP.US)$ The financial results conference call is waiting for you to attend the live broadcast! Now let's learn how to understand the legendary financial statements together and join in the fun!

The Income Statement is one of the three basic financial statements, summarizing a company's income and expenses for a specific period. The key indicators to focus on in the Income Statement are sales revenue, net income, and operating profit.

To understand the profitability of the company's various business operations, it is important to pay attention to changes in revenue from the main business. Net income and operating profit are particularly important to monitor, as they reflect the core profitability and sustained competitiveness of a company.This week, Apple $Apple (AAPL.US)$ In the released 2021 Q1 financial report, Apple's quarterly revenue exceeded 100 billion US dollars for the first time! Cook could not contain his excitement at the analyst conference, "We couldn't be more optimistic. If it wasn't for the impact of the COVID-19 pandemic, the performance could have been even better."

Understanding the cost of goods sold, operating expenses, and taxes, and being familiar with who will share the dividends with the company in operation.

The balance sheet is the first of the three major financial statements in accounting, reporting a company's assets, liabilities, and owner's equity at a specific point in time. Its basic structure is: Assets = Liabilities + Owner's Equity.Regardless of the company's situation, this accounting equation is always true.

Here, we need to analyze the company's cash, various deposits, short-term investments, various accounts receivable and payable, inventory, etc. The increase in current assets compared to previous years indicates that the company's payment ability and liquidity have improved.

The Cash Flow Statement is one of the three basic financial statements, expressing the changes in cash (including bank deposits) of an institution during a fixed period (usually monthly or quarterly).The Cash Flow Statement can indicate a company's short-term solvency, stability, and investment activities.

Tesla $Tesla (TSLA.US)$ Tesla raised $5 billion through another stock offering. Furthermore, the company expects to see a significant amount of convertible bonds convert to stocks due to a sharp rise in stock price. With GAAP net income approaching $1 billion, plus several hundred million dollars in depreciation and stock-based compensation, Tesla presented a decent free cash flow data report.