VEDKUBER / ACADEMY / FUNDAMENTAL ANALYSIS

Reading a Balance Sheet, P&L and Cash Flow

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Three Statements, One Story

Every listed company publishes three core financial statements each quarter and year. You don't need a CA degree to read them — you need to know what question each one answers. Treat them as three different cameras pointed at the same business: one takes a photograph, one records a film, and one follows the money.

StatementQuestion it answersCovers
Balance SheetWhat do they own and owe?One single date (a photograph)
Profit & LossDid they make money?A period — quarter or year (a film)
Cash FlowWhere did cash actually move?The same period, in real rupees

Balance Sheet — "What do they own and owe, right now?"

A snapshot at one moment in time:

Check your understanding

  1. The Balance Sheet primarily tells you:
  2. A company shows rising net profit but negative and worsening operating cash flow. This combination should be treated as:
  3. Which statement breaks cash movement into operating, investing, and financing activities?
  4. Two companies each report ₹100 crore net profit on ₹1,000 crore revenue. Company A's operating cash flow is ₹95 crore with receivables of ₹120 crore; Company B's operating cash flow is −₹40 crore with receivables of ₹480 crore. What does this difference most directly suggest about Company B?
  5. A company's revenue grew 20% year-on-year while its net profit grew only 5%. Which investigation follows most directly from that gap?

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