O'Reilly logo

Finance Basics (HBR 20-Minute Manager Series) by Harvard Business Review

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Using the Statements to Measure Financial Health

The financial statements tell different but related stories about how well your company is doing financially:

 The income statement shows the bottom line. Using the rules of accounting, it indicates how much profit or loss a company generated over a period of time—a month, a quarter, or a year.

 The balance sheet shows whether a company is solvent. It provides a snapshot of the company’s assets, liabilities, and equity on a given day.

 The cash flow statement shows how much cash a company is generating. It also tracks, in broad terms, where that cash came from and what it is being used for.

Now you’re ready to take the next step: interpreting the numbers these statements provide. For example, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required