What are the three key financial statements?

The three key financial statements used in financial analysis and reporting are the income statement, balance sheet, and cash flow statement.

The income statement provides information about a company's revenues and expenses over a specific period, resulting in net income or loss. This statement is essential for assessing the company's operational performance and profitability.

The balance sheet presents a snapshot of a company’s assets, liabilities, and equity at a specific point in time. This statement is crucial for understanding the financial position and capital structure of a business, as it reflects what the company owns and owes.

The cash flow statement tracks the inflows and outflows of cash within an organization across operating, investing, and financing activities. It is vital for evaluating the liquidity and financial health of the business, highlighting how well a company generates cash to cover its debts and fund its operations.

Together, these three statements provide a comprehensive view of a company's financial performance, position, and cash management, which are indispensable for stakeholders and investors making informed decisions.