Topics
1. Understanding Key Financial Statements
• The three primary financial statements—Balance Sheet, Income Statement, and Cash Flow Statement—provide a complete picture of a company’s financial health
• Learn how to evaluate a company’s assets, liabilities, and shareholder equity, and understand the capital-intensive nature of the chemical and defense industries
2. Balance Sheet
• Key Insight: Assets like machinery and patents (in chemicals) or specialized equipment (in defense) are significant to operational capacity and financial structure
3. Income Statement
• Understand how revenue, expenses, and profits are recorded. Learn how COGS, operating expenses, and profitability metrics are essential in evaluating performance
• Key Insight: The timing of revenue recognition, particularly in long-term defense contracts, and R&D investments heavily affect profitability in both industries
4. Cash-Flow Statement
• Understand how operating, investing, and financing cash flows provide insight into liquidity and cash management
• Key Insight: Cash flow is often a better indicator of sustainability, especially in industries like defense where long-term contracts can delay cash inflows