Earnings Reports

Did you know that companies have diaries, where they record all things dear to them? 🫢

Instead of a high school crush, companies keep track of money, and release it to the public 🤩

Earnings report = document that records all financial performance 📊

They exist to provide transparency to investors and stakeholders about the company’s financial health 💪

Earnings reports are mostly released on a quarterly basis, but some companies may release them more or less frequently 🗓️

When reading an earnings report, there are 4️⃣ key things to look for:

Revenue, Earnings per Share (EPS), Net Income & Cash Flow

Let’s explore each of these ➡️

Revenue = total amount of money a company made from its products or services 💵

Earnings per share (EPS) = amount of money a company made for each share of stock that an investor owns 📈

Net income = total profit a company made after all expenses have been accounted for 💰

Cash flow = cash a company has coming in and going out 💸

To further understand an earnings report, compare it to the company’s past performance and its competitors 📊💰