Part 02: Financial Statements
Chapters 06–15 · P&L, Balance Sheet, Cash Flow, Annual Report, MD&A
Practice Lab (Hands-On)
| Resource | Description |
|---|---|
| 00-practice-lab | Diagrams, Indian market examples, 13+ practice questions with answer key |
| assets/diagrams | SVG visuals used across this part |
| 00-printable-worksheet.html | Print-friendly worksheet — Ctrl+P to save as PDF |
Complete the Practice Lab after finishing all chapters in this part.
Chapters in this Part
- 06-profit-and-loss-statement
- 07-balance-sheet-intro
- 08-balance-sheet-practical
- 09-balance-sheet-profitability
- 10-balance-sheet-deep-dive
- 11-graham-number-intro
- 12-altman-z-score-intro
- 13-cash-flow-statement
- 14-annual-report-analysis
- 15-mda-management-discussion
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