Introduction to the 'Investing: Back to Basics' series
 

It's Time To Go Back To The Basics!


We hope our "Back To Basics" series brings about a change in investors' approach towards investing. The lost art of carefully studying a stock before making the purchase, we believe, needs to make comeback. Understanding the nuances of profit and loss accounts, balance sheets, and cash flow statements has always been pertinent, more now than ever before.

So, let's begin the journey to educate ourselves towards a fruitful investing experience. In this series articles, we will try to bring to you the basics of investing by acting as guideposts to unraveling the mystery behind the financial statements.

While soft qualitative metrics like corporate governance and management quality will continue to be clouded under subjectivity, our effort will be to arm you with a better understanding of the ways companies can be researched.
 Getting Started
» Investing: Back to Basics
In this article we shall discuss a very important human tendency that every investor should undoubtedly not avoid.
» Where To Gather Information From?
In this article, we shall discuss how incentives can prove to be a double-edged sword
» Key Constituents Of An Annual Report
What are the key constituents of an annual report?
 Profit And Loss Statements Of Non-Financial Companies
» Introduction To Financial Statements
An overview of the three key financial statements found in annual reports.
» Gauging A Company's Revenues
How to go about gauging a company's revenues?
» Analysing Companies' Operating Expenses
Understanding and analysing the key operating costs.
» Discussion On Operating Margins
Operating margins - What they are and how they differ from one industry to another.
» Discussion On Depreciation & Interest Charges
Learn about the two key depreciation methods and the interest coverage ratio.
» Key Items Below The Profit Before Tax Level
A discussion on taxes, net profits and appropriation.
» Dividends, Payout Ratios And Their Importance
A brief discussion on dividends, yields and gauging a company's dividend policies.
 Balance Sheet Of Non-Financial Companies
» Introduction To Balance Sheets
A discussion on share capital, reserves & surplus and loans & borrowings - Key liabilities of any company.
» Discussion On Fixed Assets
What is the difference between gross fixed assets and net fixed assets? Get the answer here.
» Current Assets - What Are They?
How to go about gauging a company's current assets.
» Current Liabilities, Working Capital And Related Ratios
Understanding current liabilities, working capital and related important ratios.
» Dissecting The Investments On Books
What does the company do with the excess cash on books? Is it investing the same wisely? Get to know here.
» Financial Statements: Key Ratios
A brief discussion on some of the most important financial ratios that every investor must be aware of.
 Cash Flow Statement
» What Are Cash Flows From Operations?
Is the company actually making money from its core operations? Get the answer to this question here.
» Discussion On Cash Flow From Investing Activities
Where is the company investing its money? Is it acquiring plant and machinery or is it parking the same in other investments?
» Relation Between Capital Structure And Cashflows
This section discusses how a company goes about funding its operations.
» Key Ratios Related To The Cashflow Statement
A discussion on some of the key ratios related to the cash flow statement.
 Financial Statements Of Banks/ Financial Institutions
» Understanding The Profit & Loss Statement Of Banks/ Financial institutions
As compared to a manufacturing company, a bank/ financial institution reports its P/L statement differently. Learn about the same here.
» Key Ratios Associated With Banks' P&L Statements
Read about some of the important parameters to gauge the performance of a bank/ financial institution.
» Making Sense Of A Bank's Balance Sheet
A brief overview on the 'capital and liabilities' side of a bank/ financial institution's balance sheet.
» Making Sense Of A Bank's Balance Sheet - II
An overview on the asset side of a bank/ financial institution's balance sheet.
» Key Ratios Related To Banks' Balance Sheets
Some of the key ratios that an investor must know relating to a bank/ financial institution's balance sheet.
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