Class 25:Financial statement introduction

Quantitative Analysis is a technique for studying a company through various quantitative and figure based statements, that gives an elaborative description of the financial performance and financial position of a firm.

Doing Quantitative Analysis has been challenging over the years. The company wouldn’t release data periodically, the data could be manipulated and more. With the Establishment of SEBI in the 1990s, increased regulation for companies, and stringent auditing, the companies had to give out audited and periodic financials.

But even after that, the accessibility of knowledge to retail investors was quite limited. Information wouldn’t flow as freely and readily, and gaps in information and time it would take would cause problems for investors.

With the growth in regulations and rise in the digital age; periodic, regulated, and free-flowing, quick and readily available information is now available to all classes of investors and the gap inflow of information has been lower than ever.

But Does it end the challenges we face regarding the analysis of financial statements? We have mastered the art of collecting data, but processing it in ways useful to us requires a basic understanding of all types of Statements. This has been discussed in detail in a video lecture of the 25th class of the course.

1. What are the different types of financial statements?

2. What do each of them denote?

3. How to make sense out of it?

4. How to use them for comparison?

In order to know more and learn about trading and investment in the Indian stock market, sign up for a complete video course by Kundan Kishore titled “The Complete course on Indian Stock Market”.