Company analysis
The three financial statements describe one business from different angles
The income statement records revenue and expenses over a period. The balance sheet shows assets, liabilities and equity at a point in time. The cash-flow statement reconciles changes in cash across operating, investing and financing activities. The statements connect, but none substitutes for the others.
Explainer Reviewed 08-21-2026
What it is for
Reading the statements together helps test whether reported profit is turning into cash, how growth is financed and which balance-sheet accounts changed. Footnotes explain accounting policies, commitments and details the primary statements compress.
What it cannot tell you
A positive period does not guarantee durable economics, and cash can rise because a company borrowed or issued shares. Free cash flow is not a single standardized GAAP line. This guide does not value a company.
How to verify the object
Use the company’s filed 10-K or 10-Q on SEC EDGAR. Match the fiscal period and units, read comparative columns and trace significant changes into the footnotes. If management presents an adjusted cash measure, open its reconciliation.