Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
What Should You Look for in a Company’s Financial Statements Before Investing?
Financial statements contain a lot of details, and some of them are mainly for accounting or regulatory purposes. What matters most is identifying the figures that show whether the company is profitable, stable, and financially disciplined. The first thing professionals examine is revenue and profitRead more
Financial statements contain a lot of details, and some of them are mainly for accounting or regulatory purposes. What matters most is identifying the figures that show whether the company is profitable, stable, and financially disciplined.
The first thing professionals examine is revenue and profit trends. It is not enough to see profit in one year; the important question is whether the company’s revenue and profit are growing consistently over several years.
Investors also look carefully at the quality of assets. It is important to understand what the assets consist of and whether they are productive assets that generate income, rather than assets that simply sit on the balance sheet without contributing to growth.
Finally, experienced investors review the notes to the financial statements and management discussion. These sections explain unusual numbers, major risks, legal issues, or changes in accounting methods. Sometimes the most important information about a company’s future risks is hidden in these explanations rather than in the main figures.
In practice, when analyzing many companies, professionals usually focus first on revenue growth, profitability, cash flow, and debt levels. If those indicators look strong, they then examine the rest of the statement for deeper understanding
See lessHow Can I Access a Company’s Financial Statements for Fundamental Analysis Before Buying Its Stocks?
If you want to do fundamental analysis on a Nigerian company, the first step is to get its financial statements—income statement, balance sheet, and cash flow statement. Here’s the step-by-step approach for companies listed in Nigeria: 1. Check the Nigerian Exchange (NGX) Website Go to the NigerianRead more
If you want to do fundamental analysis on a Nigerian company, the first step is to get its financial statements—income statement, balance sheet, and cash flow statement. Here’s the step-by-step approach for companies listed in Nigeria:
1. Check the Nigerian Exchange (NGX) Website
Go to the Nigerian Exchange (NGX)
Use the Company Listed Securities section to find the company you’re interested in.
Most listed companies publish their annual reports and financial statements (usually PDF) under Investor Relations or Financials.
2. Visit the Company’s Investor Relations Page
Most public companies maintain a website section called “Investor Relations” or “Investors”.
There, you can usually download:
Annual Reports (Audited Financial Statements)
Interim/Quarterly Reports
Corporate Governance Reports
Tip: Look specifically for the latest audited financial statements, as they provide the most reliable information for fundamental analysis.
3. Check the Securities and Exchange Commission (SEC) Nigeria
Securities and Exchange Commission Nigeria regulates public companies.
SEC maintains filings of listed companies, including annual returns and financial statements.
4. Use Stockbrokers or Registrars
Platforms like InvestNaija, Meristem, or Coronation Registrars sometimes provide financial statements or summaries for research purposes.
You can request e-copies of reports if not readily available online.
5. Check Financial News and Data Providers
Services like Proshare, Nairametrics, BusinessDay, or Bloomberg Africa sometimes post summaries of company financials, ratios, and reports.
Useful for a quick snapshot, but always cross-check with the official statements.
6. What to Look For Once You Get the Financial Statements
Income Statement: Revenue growth, net profit, profit margins.
Balance Sheet: Assets, liabilities, equity, debt levels.
Cash Flow Statement: Cash from operations, investing, and financing.
Ratios for Analysis: P/E, ROE, ROA, current ratio, debt-to-equity.
See less