Part 02: Financial Statements

Chapters 06–15 · P&L, Balance Sheet, Cash Flow, Annual Report, MD&A

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Practice Lab (Hands-On)

ResourceDescription
00-practice-labDiagrams, Indian market examples, 13+ practice questions with answer key
assets/diagramsSVG visuals used across this part
00-printable-worksheet.htmlPrint-friendly worksheet — Ctrl+P to save as PDF

Complete the Practice Lab after finishing all chapters in this part.

Chapters in this Part


Read in order for best learning flow.

Chapters

06Profit & Loss Statement — Margin Stack and Earnings Quality'Revenue starts the story, but profit decides whether the story07Balance Sheet Introduction — Assets, Liabilities, and Equity'The P&L may attract you; the Balance Sheet tells the08Balance Sheet Practical — Ratios, Working Capital, and Red Flags'Profit can be managed; the Cash Flow Statement and Balance Sheet are much harder to09Balance Sheet Profitability — ROE, ROCE, and DuPont'A strong balance sheet is the foundation; profitability ratios show how well shareholders' capital is being10Balance Sheet Deep Dive — Quality of Earnings Link'Reported profit is an opinion; balance sheet quality and cash flow are where earnings truth is11Graham Number Introduction — Fair Value ScreeningDisclaimer: The Graham Number is a screening tool, not a buy/sell signal. It has limited applicability for growth stocks and12Altman Z-Score — Financial Distress Screening (India)Disclaimer: The Altman Z Score was designed for manufacturing/industrial companies. Do not apply it reliably to banks, NBFCs, or insurance13Cash Flow Statement — CFO, FCF, and Earnings QualityDisclaimer: Cash flow analysis complements but does not replace full financial statement review. Figures should be read from audited annual14Annual Report Analysis — CFA Reading FrameworkDisclaimer: The annual report is a legally binding disclosure, but forward looking statements may be uncertain. Always cross verify with audited15MD&A — Management Narrative vs NumbersDisclaimer: MD&A forward looking statements contain uncertainty. CFA practice: trust narrative, verify with financial