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  📈 Understanding the Profit & Loss Statement Also called the Income Statement – your guide to knowing if a company is making money 🧾 What is a Profit & Loss (P&L) Statement? The P&L statement shows the financial performance of a company over a period — usually a quarter or financial year . If the balance sheet is a snapshot of “what a company owns and owes,” then the P&L is like a video recording of how well the business performed. It answers: Did the company make a profit or a loss? How much did it earn in revenue? What were its major expenses?  📂 Structure of a P&L Statement Section What It Means Example Revenue (Sales) Total money earned from business operations ₹100 crore from software sales COGS (Cost of Goods Sold) Direct cost to deliver the product/service ₹40 crore in tech & support cost Gross Profit Revenue – COGS ₹60 crore Operating Expenses Salaries, rent, marketing, admin expenses ₹25 crore Operating Profit (EBIT) ...

  How to Read Financial Statements – Focus on Balance Sheets A simple, no-jargon guide for Moat In You readers When you look at a company’s balance sheet, think of it as a snapshot of its financial health at a specific point in time. It follows the fundamental equation: Assets = Liabilities + Shareholders’ Equity Here's a breakdown of what each term means: 1. Assets These are resources the company owns — anything that can be converted into money. Examples: Current Assets (short-term, within 1 year): cash, receivables, inventory Non-current Assets (long-term): property, equipment, long-term investments 2. Liabilities What the company owes to others. Examples: Current Liabilities : bills, short-term loans, payables Long-Term Liabilities : bonds payable, mortgages, long-term debt 3. Shareholders’ Equity This is the net worth of the company: the assets left after paying liabilities. Includes: Paid-in capital Retained earnings (accumulated profits) ...

  Investment Philosophies: A Detailed Briefing This briefing synthesizes the core principles and strategies espoused by renowned investors Benjamin Graham, Warren Buffett, and Charlie Munger, drawing from various sources to highlight their shared foundations and unique contributions. I. Benjamin Graham: The Father of Value Investing Benjamin Graham, through his seminal works "Security Analysis" (1934) and "The Intelligent Investor" (1949), laid the groundwork for value investing. His philosophy emphasizes a disciplined, analytical approach to uncover undervalued securities and protect against significant losses. Key Principles: Margin of Safety:  This is Graham's cornerstone principle. It involves "buying a security at a significant discount to its intrinsic value," aiming to "not only provide high-return opportunities but also minimize the downside risk of an investment." In essence, Graham sought to "buy assets worth $1 for 50 cents....

  What Is Fundamental Analysis? Fundamental analysis is the process of finding out  how strong and valuable a company is  by looking at its business, finances, and future potential. It helps you decide  whether a stock is worth buying, holding, or avoiding . Imagine you're planning to buy a small business, like a local shop. Before you invest, you’d want to know: Is it making a profit? Does it have a lot of debt? Are customers happy and returning? Can it grow in the future? That’s exactly what fundamental analysis does — but for companies listed in the stock market. 🔍 What Do You Look At in Fundamental Analysis? 1.  Company Financials You check how the company is doing money-wise: Revenue : Total money the company makes. Profit (Net Income) : Money left after all expenses. Assets and Liabilities : What the company owns vs. what it owes. Cash Flow : How much actual cash is coming in and going out. 2.  Earnings Per Share (EPS) This tells you how much profit ...

  📘  What Is Fundamental Analysis? Fundamental analysis involves evaluating a company's financial statements, performance metrics, and market position to determine its intrinsic value. The goal is to assess whether the stock is overvalued, undervalued, or fairly priced, guiding investment decisions. 🏢 Company Overview: KPIT Technologies Ltd. KPIT Technologies Ltd.  is a global partner to the automotive and mobility ecosystem, focusing on software development and integration for software-defined vehicles. The company aims to facilitate a clean, smart, and safe future in mobility. 📊 Key Financial Metrics (As of FY2025) Revenue: ₹5,842.35 crore Net Profit: ₹839.6 crore Earnings Per Share (EPS): ₹30.6 Return on Equity (ROE): 33.77% Return on Capital Employed (ROCE): 43.96% Operating Profit Margin: 21% Net Profit Margin: 14.37% 🔍 Interpreting the Metrics Revenue and Profit Growth : The company has shown consistent KPIT Technologies: Key Financials (FY2021–FY2024) : Fiscal ...