How to Read, Analyze and Understand Financial Statements

This article explains financial statements in plain English. The income statement, balance sheet and statement of cash flows are discussed, along with a number of financial ratios, which are explained and calculations presented for the reader. A continuing example, Nike, is used in the article. Nike is evaluated relative to a group of peer companies and well as analyzing its own performance over the past three years.

All calculations are shown in boxes, with all calculations, and every statement item and ratio is explained in plain English.