Alumnae from J.P. Morgan break down financial docs

by Christianna Wymbs (GSB ’16)

Financial statements help investors to determine the financial health of a company.

Sound exciting?

Well, financial statements at times can be dull, but Anu Joseph (GSB ’10) and Angela Luongo (GSB ’11) kept Smart Woman Securities members on their toes with sarcasm and humor last week when they visited to discuss these statements.

Ms. Joseph and Ms. Luongo, who work at J.P. Morgan, dissected the three financial statements: balance sheet, income statement and statement of cash flows, giving their audience a better understanding of why individuals would want to analyze these filings.

  • The balance sheet illustrates what the company owns (assets) and what it owes to others (liabilities) at a given point in time.
  • The income statement highlights how much money the company makes (revenue), what it spends money on (expenses) and what is left over (profit) for a certain period.
  • The statement of cash flows explains what the company has spent cash on over a given term.

Essentially, the balance sheet is a snapshot of the company, while the income statement can be thought of as a video. Together, the three financial statements paint a vivid picture of a company and industry — and form a key trio to review before investing in a stock.

Ms. Joseph and Ms. Luongo pointed out that all public companies’ filings can be accessed through the SEC’s web site at www.sec.gov/edgar.html.

The next Smart Woman Securities meeting is set for tomorrow night, October 23, at 7:30 p.m. in Daleo Hall (lower level of Hughes). Members and non-members alike are welcome to attend.

 

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