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Evaluating a Company’s Financial Health: A Guide for Investors
You wouldn’t buy a house without checking its foundation, right? Same logic applies when you’re investing in or managing a company—you’ve got to look under the hood and figure out what’s going on with the financials.
Analyzing Balance Sheets and Income Statements
Two documents stand out when it comes to understanding a company’s financial health — the balance sheet and the income statement. More than just numbers on a page, these powerful tools give insight into how a company operates, where its money comes from, and how it manages its resources.
