How to Analyze an Income Statement Like a Hedge Fund Analyst

This video covers how to analyze an income statement. How to analyze financial statements is one of the most crucial elements of fundamental investing. In particular, an income statement consists of a company's revenues (sales), its expenses and ultimately the company's profits. This video is an introduction to financial statement analysis for beginners.

After watching this video you will have a better understanding of the following questions:
How to value a stock, How to analyze a stock, how to analyze financial statements, how to analyze financial statements of a company, how to analyze an income statement and balance sheet.

Link to Investor Center Patreon where I post all the tools and resources I personally used to grow my portfolio to $300,000 at 24 years old:

[joealtamuro]

You mentioned early in the video that you didn’t know why companies would close their books in September instead of December. It’s usually due to “seasonality”, when sales are at their lowest in the year coming off of the summer months. Therefore Net Working Capital [NWC (= Inventories + Receivables - Payables
+/- Net Accruals)] should be at its lowest in September. Don’t forget Apple usually releases new products in the 4th quarter so inventory levels should be at their lowest at the end of September. By Closing the books when NWC is at its lowest, Capital employed will also be at its lowest. This will maximize ROCE. Also, it’s just best to close in the quarter with the slowest activity so as not to distract the company from the busy holiday season. Most retailers also operate in this fashion.

[kakivincent]

I'm in complete awe at how I went from living an average life to making over 63k per month. It's amazing. The financial markets are full with opportunities, but I've learned a lot over the past few years to doubt that. The key is knowing where to focus. Well appreciated, Mr SAM DEYMON.

[samman]

Your videos like this are so much better than anything else on YouTube. Please make videos about how to analyze the cash flow statement and balance sheet please!

[FFR]

Great, great presentation, I really enjoyed the way you showed how to make a discounted cash flow model in a simple and objective way.
I'm studying valuation, but it's really hard to find practical content online, it would be awesome to see a whole series on how to make a proper valuation of a stock and how to read all the three key financial statements (Balance sheets, Cash flow and Income Statement) and how to use the financial ratios (PE, Price to book... ) with a detailed breakdown of each one.

[Shazam_]

I'm currently doing my CA(SA) articles at Deloitte and just finished writing my CFA level 2 exam and I'm honestly so impressed with this video. I did a 4 year degree specializing in finance with accounting and can confirm that this video explains everything in the SOCI (Newish name for Income Statement as per IFRS) so clearly and concisely. You definitely got a new subscriber!

[jclopez]

Excellent series of videos. And, yes! Please do a DCF Valuation video. This would be very insightful.

[BSI_Inc.]

Thanks so much for this video. I hope you also teach us how to analyse balance sheets and cash flow statements and the financial model too coz I personally am still unclear about that

[jamieamato]

I'm only halfway through the video and I just have to say your explanations are by far the best I have heard so far. I've been researching how to analyse companies for investment for months, it's been slow progress. Although I was familiar with most of the terms you were speaking about, my understanding of them just trippled thanks to your breakdown of each of them. Thankyou so much I will now prioritize this chanel first, amazing video 😄

[ftnavy]

This is one of the best videos I've ever watched on income statements and really filled a lot of gaps I had in my knowledge of why I should care about different items. I would LOVE to see you do a DCF video.

[althe]

Gotta say, your videos and explanations and graphics and topic choices are way superior to everything else (in this genre) on YouTube.

[profit_paradox]

Would love to see a video that covers the projections for DCF valuation which is ultimately used to determine if a stock is undervalued!! Very helpful <3

[gtrsmplz]

Thank you for making this. You have a great narrating voice. Very easy to understand.

[malikdey-nativemoor]

Discounted Cash Flow Evaluation would be so helpful if we were explained in detail. What an amazing channel. Just found this channel looking for how buffet calculates intrinsic value and what a library of information, I stumbled across.

Thank You! Investor Center, for delivering amazing Content and great VALUE!

[meshari.alswainie]

Many thanks to your professional analysis- Meshari from Saudi Arabia

[MI-knid]

Love the idea behind this video and how you kept it simple. Can you go over projections in a separate video we’re you give a few examples /repetitive so it will the process”sinks in” and we can better apply it to different companies/modules. Thank you.

[luxurylife]

Your videos are wonderfully put together. I would greatly appreciate if you do a DCF model video in the future. You explain things with great ease and would be helpful to understand your view point on discounting cash flows. Thank you and keep up the great work!

[joelchauho-gmail]

Thank you for this video. It helps me a lot of this report

[onceuq]

Excellent content! Thank you for your wisdom, and soothing voice.

[lonniehardy]

The different fiscal year end dates are caused by the company's adoption of four periods per year consisting of 13 weeks each. Notice each of the four periods end on a saturday. This method causes each of your quarterly reports to contain the same number of weeks (13) and each of your fiscal years to contain exactly 52 weeks. It makes accounting a little more complex but yields exact comparability. Sometimes an accountants nightmare, but worth it in the long run.

[rosalieroku]

Excellent presentation. I understand this better now.
Yes, more on your spreadsheet please.