Educators
See why educators across the country love Rapunzl
Districts
Discover how Rapunzl can bring financial literacy to an entire district.
After-School
Create an investing or personal finance club with your students.
Parents
Explore bringing Rapunzl to your homeschool for your kid.
Banks & Credit Unions
Learn how we serve communities sponsored by financial institutions.
Financial Math
Integrate personal finance into any 6-8th grade math class.
Personal Finance
Build financial literacy & satisfy graduation requirements with 6-12th graders.
College & Careers
Learn about careers, taxes, and paying for college. For 9-12th graders.
Advanced Investing
For 11-12th graders interested in understanding fundamental & technical analysis.
Module 17
Reading Company Financials
In the financial world, information is power, and understanding a company's financial health is crucial for informed investing.
In this module, dive into the three fundamental financial statements: the Income Statement, Balance Sheet, and Cash Flow Statement in order to learn how to analyze a company's profitability, liquidity, and financial sustainability.
Module At A Glance
Grade Levels:
9th -12th
Est. Length:
1-3 Hours (21 slides)
Activities:
1 Activites
Articles:
4 Articles
Languages:
English & Spanish
Curriculum Fit:
Math, Business, Economics, CTE, Social Studies
Standards Alignment:
CEE National Standards, Jump$tart National Standards & Relevant State Standards
Guiding Questions
- Where do companies report their financial progress and what information do these reports tell us?
- How can investors track a company’s growth and future plans?
- Why are investors able to trust company financials that they report?
- What is the key information for investors to look out for in company documents?
- What are some ways to assess if a company's stock is over or undervalued?
- How do investors choose what to invest in?
Enduring Understandings
- The 3 major components of financial statements include the Income Statement, Balance Sheet, and Cash Flow Statement.
- How to read and analyze company financial documents with basic accounting.
- The type of information present in financial reports and its relevance.
- Investors should look to the future to understand a company’s potential for growth.
- There are multiple ways to value a company, however, none are perfect and must be analyzed with context.
Module Vocab & Key Topics
Financial Report
A formal record of a company's financial activities, often released annually and quarterly. Financial reports are crucial for investors to evaluate a company's performance.
10-K
An annual report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive overview of a company's financial health. It is the most detailed public record for investors.
Balance Sheet
A financial statement that shows what a company owns (assets), owes (liabilities), and the shareholders' equity at a particular point in time. This statement adheres to the accounting equation.
Accounting Equation
The fundamental equation of accounting that must hold true for financial statements to be valid. It is Assets = Liabilities + Shareholders' Equity.
Income Statement
A financial document that shows a company's revenues, expenses, and net income over a specific period, often called the Profit and Loss Statement.
Cash Flow Statement
A statement that summarizes the flow of cash and cash equivalents in and out of the company. It provides insights into a company’s ability to generate cash and meet financial obligations.
Book Value
Calculated as Total Assets minus (Intangible Assets + Liabilities), it represents the value of a company’s tangible assets.
Market Value
The current stock price multiplied by the total number of outstanding shares. Market value may not always represent the true value of a company.
Price Multiples
Ratios calculated using key figures from financial statements to assess a company's valuation, such as P/E ratio, Enterprise Value, and EBITDA.
Discounted Cash Flow (DCF)
A valuation method that estimates the value of an investment based on its expected future cash flows, discounted back to present value.
Stakeholder
Any individual or organization that has an interest in the performance and activities of a company, including management, employees, investors, and government agencies.
Pricing data is provided by Nasdaq Inc and Coinbase Inc. All information provided 'as is' for informational purposes only. This information is not intended for trading purposes nor is it intended as advice. Neither Rapunzl nor any of its independent providers is liable for informational errors, incompleteness, or delays, or for actions taken in reliance on information contained herein. By accessing the Rapunzl platform you agree not to redistribute the information found therein.
The information contained on this website and from any communication related to this website is for information purposes only. Rapunzl Investments LLC (Rapunzl) does not hold itself out as providing any legal, financial or other advice. Rapunzl also does not make any recommendation or endorsement as to any investment, advisor or other service or product or to any material submitted by third parties or linked to this website. In addition, Rapunzl does not offer any advice regarding the nature, potential value or suitability of any particular investment, security or investment strategy. The material on this website does not constitute advice and you should not rely on any material in this website to make (or refrain from making) any decision or take (or refrain from making) any action. All investment, borrowing or tax decisions should be made with the advice of an appropriately qualified and licensed advisor.
The information contained on this website and from any communication related to this website is for information purposes only. Rapunzl Investments LLC (Rapunzl) does not hold itself out as providing any legal, financial or other advice. Rapunzl also does not make any recommendation or endorsement as to any investment, advisor or other service or product or to any material submitted by third parties or linked to this website. In addition, Rapunzl does not offer any advice regarding the nature, potential value or suitability of any particular investment, security or investment strategy. The material on this website does not constitute advice and you should not rely on any material in this website to make (or refrain from making) any decision or take (or refrain from making) any action. All investment, borrowing or tax decisions should be made with the advice of an appropriately qualified and licensed advisor.
© 2024 Rapunzl. All rights reserved.