How to read financial statements 101

This is an income statement. It tells you if a company made profits or losses. Profits are black, losses are red.

So even if you are like Soul and you can't read...just look at colours okay
This is a balance sheet. This tell you the assets and liabilities. Sorry, here you need to read, but I will highlight the assets and liabilities okay.
This is a cash flow statement. It tells you if a company made cash or if they are eating up cash. Again, black is good. Red is bad.
I know this 1 is a bit hard, but I believe in you guys. Follow me slowly

A stock split is when a company takes your share and they chop it up into more shares.

You have 1 share & it is worth R10. They decides to give you 10 shares for every 1 u hold. Now u have 10 shares at R1
Stocks splits is how Aveng ended up with 63 bn shares

See below. I didn't make this number up, I promise🤣

moneyweb.co.za/tools-and-data…
Bonus line and why I am so hated when it comes to Aveng...I believe Aveng will do a share consolidation. It is exactly the opposite of a stock split

Lets say you have 100 shares. They then decides to give you 1 share for every 100. So your 1m shares will never turn into R1m
I don't have a crystal ball and I could be 100% wrong about the consolidation, but wouldn't you rather me tell you the truth based on what I do know instead of you holding a lottery ticket in vain???

End of my lesson📚📚📚

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More from @SoulFairy3

13 Aug
How to read an Income Statement 101

I use this website app.tikr.com

You can type in any company and it will display the financials.

Let's use Aveng of course
Red is bad. Black is good.

An Income Statement shows you if a company made profits or losses.

It contains all the income and all the expenses of the company Image
You start at the top with Revenue. This is the sales the company made. Think of it as the heart of any business. We all start a business to make sales.

You want this number to increase year on year, right???

Let's not worry about inflation now. This number must grow annually Image
Read 9 tweets
12 Aug
Something that I really struggled understanding for the longest time. Not sure how you guys feel?
An ETF is usually a passively managed index fund that trades on a stock exchange. I always tell people it is a basket of shares.

Lets say you buy the Satrix JSE Top 40. Satrix buys the actual shares of the Top 40 JSE companies and you own a piece of each.
ETF's are passive because they don't go buy and sell shares daily in there. If a company ie drops out of the JSE top 40, that's the only time Satrix will go and change the basket.
Read 10 tweets

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