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Read earnings, cash flow and dividends

Follow these articles in order, or open any explanation on its own. Each step includes examples and a question to check your understanding.

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  1. Step 1 · Concept explained

    How Financial Statements Fit Together

    The income statement reports operating results over a period, the balance sheet reports a financial position at a date, and the cash-flow statement explains movements in cash. Reading them together helps separate accounting profit, financing and actual cash movement.

  2. Step 2 · Worked guide

    How to Read an Earnings Report: A Worked Walkthrough

    Read an earnings release as a connected story: sales, margins, per-share profit, cash generation and the outlook. A headline beat is only the starting point.

  3. Step 3 · Worked guide

    Revenue, Gross Profit and Operating Margin: Read the Income Statement

    An income statement shows revenue and expenses over a period. Margins divide a profit subtotal by revenue so that scale and profitability can be considered separately.

  4. Step 4 · Worked guide

    How to Read a Balance Sheet: Cash, Debt and Working Capital

    A balance sheet is a snapshot of assets, liabilities and equity. Reading it means asking what is liquid, what must be repaid and when obligations come due.

  5. Step 5 · Worked guide

    Operating Cash Flow and Free Cash Flow: Follow the Cash

    Profit and cash differ because accounting recognizes activity on different schedules from cash receipts and payments. A cash-flow bridge makes those differences visible.

  6. Step 6 · Worked guide

    What Is EBITDA? Calculation, Adjustments and Limits

    EBITDA means earnings before interest, taxes, depreciation and amortization. It can help compare operating results, but it does not measure cash available to spend.

  7. Step 7 · Worked guide

    GAAP vs. Adjusted Earnings: Read the Reconciliation

    Adjusted earnings remove selected items from reported accounting results. The reconciliation shows what changed; the investor still has to judge whether the exclusions clarify performance.

  8. Step 8 · Concept explained

    Why Stocks Can Fall After Good Earnings

    A stock can fall after strong earnings because its price reflects expectations about the future, not just the reported quarter. Results, guidance, valuation and what investors had already anticipated can point in different directions.

  9. Step 9 · Worked guide

    Ex-Dividend Dates, Record Dates and Payment Dates Explained

    The ex-dividend date determines whether a purchase normally includes the next dividend. The record date identifies eligible holders; the payment date is when the cash is paid.

  10. Step 10 · Worked guide

    Dividend Yield, Payout Ratios and Sustainability

    A dividend yield describes a distribution relative to price. Sustainability requires a separate review of earnings, cash generation, debt and the company’s ability to keep paying.