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Investment guides

Information and guides for the new or potential investor.

   
 
Financial statements: Introduction

THIS GUIDE IS NEITHER AN OFFER TO SELL, NOR A SOLICITATION OF AN OFFER TO BUY, ANY SECURITIES OF INTERNATIONAL BUSINESS MACHINES CORPORATION OR ANY OTHER COMPANY.

The guide to financials provides basic information on how to read the financial statements in a company's annual report. It discusses key numbers in each of three statements common to all annual reports and offers suggestions from experienced investors on making sense of these numbers.

Like any new and complex subject, the language of financial statements may at first seem mysterious, even intimidating. This guide can help you begin to gain a basic financial vocabulary and to understand the subject. Topics cover only the fundamentals of accounting and financial reporting, and the guide and its glossary explain the terms and ideas you will need to understand these topics.

Financial statements: Content
 
 

Statement Basics

    About the statements
     
What's in them?
Who prepares them?
What's the auditors' report?
The notes

    Statement of earnings
     
Purpose
Key numbers
Using the information

    Statement of financial position
     
Purpose
Key numbers

    Statement of cash flows
     
Purpose
Key numbers

    Analyzing statements
     
Overview
Interpreting the numbers

    Looking at other information
 
 

Investors' Tips



    Overview

    Business school dean
     
General suggestions
Comments on statement of earnings
Comments on statement of financial position
Comments on statement of cash flows

 

    Business executive
     
General suggestions
Comments on statement of earnings
Comments on statement of cash flows
Comments on P/E ratio and backlog

 

    High school economics teacher
     
General suggestions
Comments on statement of earnings
Comments on statement of cash flows
Comments on statement of stockholders' equity

 

 
  Resources

    Overview
    Internet resources
     
Government agencies
Investment and financial news
Investment directories
Investor education
Research

 

    Print and other resources
     
Books
Magazines, newspapers and other periodicals
Miscellaneous publications
Radio and television
 

 

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Related links
Guide to annual reports  
IBM financial statements