Understanding Financial Statements

Understanding financial statements are essential to understanding why companies make their decisions. That’s because they’re a reflection of how well a company did in its day-to-day operations at both the macro and micro level and give insight into future projections for that business or industry. Financials are also helpful when it comes to an understanding potential risks using metrics such as return on capital, which can help determine whether an investment will be worth taking without needing any other information about what kind of return you might expect once your money is invested. In this topic, you will learn key financial terminology and concepts that will help you build your financial vocabulary and knowledge.