The Merrill Lynch Guide to understanding financial reports
Want to understand how to read a company's financial statements and analyse its financial health?
This guide covers everything from balance sheets and income statements to cash flows, shareholders' equity and stock selection.
A useful read for anyone looking to become a better investor.
Download it and keep it handy.
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🎬 Finance Movies Tier List 📈
If you want to understand markets, Wall Street, bubbles, greed, incentives, and human psychology, finance books are great.
But these movies make the lessons unforgettable.
🏆 Must Watch
✅ Margin Call
✅ The Big Short
✅ Wall Street
✅ Barbarians at the Gate
These films capture market behavior, corporate power, financial crises, and investor psychology better than many textbooks.
👍 Pretty Solid
• The Wolf of Wall Street
• Boiler Room
• Inside Job
• Rogue Trader
Great mix of entertainment and lessons on sales, speculation, fraud, and risk management.
🤷 Mid
• Too Big to Fail
• Money Monster
• Trading Places
• American Psycho
Interesting watches, but not as impactful from a finance-learning perspective.
👎 Don't Waste Time
• Dumb Money
• Arbitrage
Popular, but there are much better finance films if your goal is to learn about markets and investing.
📚 My personal view:
If you're an investor, The Big Short teaches skepticism.
If you're a business student, Margin Call teaches incentives.
If you're interested in corporate history, Barbarians at the Gate is mandatory viewing.
And if you think markets are rational all the time, watch The Wolf of Wall Street.
Which finance movie would you put in the "Must Watch" category? 🍿📈👇
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Read a Balance Sheet in 7 Simple Steps
A balance sheet can tell you a lot about a business if you know where to look.
1️⃣ Asset Mix
Understand where the company's capital is invested.
2️⃣ Cash, Receivables & Inventory
Check cash generation, collections and inventory movement.
3️⃣ Asset Base
Look at PP&E, goodwill and other long-term assets.
4️⃣ Short-Term Obligations
Review payables, debt maturities and other near-term liabilities.
5️⃣ Liquidity
Can current assets comfortably cover current liabilities?
6️⃣ Capital Structure
Understand how much of the business is funded by debt vs equity.
7️⃣ Equity Base
Look at retained earnings and how much profit is being reinvested.
The balance sheet isn't just a list of numbers.
It shows where the money is, where it came from, and how financially strong the business is.
📌 Save this as a quick reference when analysing a company.
Credit - Oana Labes, MBA, CPA
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CFA Level 1 Financial Ratio Cheat Sheet
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Quantitative Finance Sheet
Master the essentials of Finance
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