[Financial Report 101] Three major statements, once you read them, you will understand them as soon as you learn them!

Last week seemed like a “Spring Festival Gala” for the stock market, popular Tesla $Tesla(TSLA.US)$ and apple $Apple(AAPL.US)$ Financial reports have been released one after another, causing a lot of discussion among shareholders! GME $GameStop(GME.US)$ with AMC $AMC Entertainment(AMC.US)$ It has given rise to a new wave of enthusiasm. On Alibaba, which was just released $Alibaba(BABA.US)$ According to financial reports, Taobao's special edition has more than 100 million monthly active users and will seize the market with Pinduoduo. There will be more Nokia next $Nokia Oyj(NOK.US)$ and Snap $Snap Inc(SNAP.US)$ The earnings call will be livestreamed and waiting for you! Now let's learn how to read the three legendary financial statements, and let's have some fun together!

The profit and loss statement is one of the three basic financial statements that summarize the company's income and expenses over a specific period. The indicators we need to pay attention to in the income statement are sales revenue, net profit, and operating profit.

Know the profitability of the company's various businesses, and focus on changes in the revenue of the main business. We need to pay special attention to net profit and operating profit, because this is a company's core profit and a reflection of continued competitiveness.Apple this week $Apple(AAPL.US)$ In the 2021 Q1 earnings report, Apple's quarterly revenue exceeded 100 billion US dollars for the first time! Cook also found it difficult to contain his joy at the analysts' meeting. “We couldn't be more optimistic. Had it not been for the impact of the COVID-19 pandemic, the results would probably have been better”.

Understand operating costs, operating expenses, and taxes, and be familiar with who will share the dividends of the enterprise during operation.

The balance sheet is the first of the three major accounting statements. It reports the company's assets, liabilities, and owners' equity at a specific point in time. Its basic structure is: assets = liabilities+owners' equity.No matter what state the company is in, this balanced accounting formula will always be equal.

Here we need to analyze the company's cash, various deposits, short-term investments, various accounts receivable, inventory, etc. Current assets have increased compared to previous years, indicating that the company's ability to pay and realise has increased.

A cash flow statement is one of the three basic reports of financial statements. It expresses changes in the increase or decrease in an institution's cash (including bank deposits) over a fixed period of time (usually monthly or quarterly).The cash flow statement shows the company's short-term solvency, stability, and the company's investment activity.

Tesla $Tesla(TSLA.US)$ It has once again raised 5 billion US dollars through stock issuance. Moreover, the company expects to see a large number of convertible bonds converted into stocks due to the sharp rise in stock prices. With GAAP net profit approaching $1 billion, plus hundreds of millions of dollars in depreciation and stock-based compensation, Tesla gave a decent free cash flow data report.