Deciphering financial statements in annual reports

Investors need them to understand a firm's profitability, liquidity and cash position

Most readers understand that financial statements are a summary of the performance position and cash flow of a company.

Yet, many readers often give up because they think they are too complicated to understand. But learning how to read and analyse them is critical if an investor wants to have a real understanding of a company's profitability, liquidity and cash position.

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A version of this article appeared in the print edition of The Straits Times on September 30, 2019, with the headline 'Deciphering financial statements in annual reports'. Print Edition | Subscribe