The Three Financial Statements

Every public company publishes three core statements, and together they tell a complete financial story.

The Income Statement reports revenue and expenses over a period — quarterly or annually — flowing down to net income. It answers: did the business make a profit?

The Balance Sheet is a snapshot at one moment showing assets, liabilities, and equity. It answers: what does the company own and owe?

The Cash Flow Statement reconciles net income to actual cash, split into operating, investing, and financing activities. It answers: where did the cash come from and where did it go?

The statements connect. Net income from the income statement flows into retained earnings on the balance sheet, and is the starting line of the cash flow statement. Changes in balance-sheet items (working capital, capex) drive cash flow. Mastering these links is the foundation of financial analysis.