Which financial statements are crucial for investors to review?

Investors typically focus on the income statement, balance sheet, and cash flow statement because these three documents collectively provide a comprehensive view of a company's financial health and performance.

The income statement illustrates a company's profitability over a specific period, detailing revenues, expenses, and profits or losses. This allows investors to assess how well a company generates income relative to its costs.

The balance sheet offers a snapshot of a company's financial position at a given point in time, presenting its assets, liabilities, and equity. This document helps investors understand what the company owns versus what it owes, providing insights into its liquidity and overall financial stability.

The cash flow statement tracks the inflow and outflow of cash within the company, categorized into operating, investing, and financing activities. This statement is critical for investors as it shows how well a company manages its cash, an essential factor for day-to-day operations and long-term sustainability.

Together, these three financial statements form a foundational analysis toolkit for investors, allowing them to evaluate a company's performance, financial health, and operational efficiency.