1. The balance sheet is the sum of statements reflecting all assets, liabilities and owners' equity of listed companies at the end of the accounting period. Through the balance sheet, we can know the company's long-term and short-term solvency, assets and liabilities. There are many subjects in the balance sheet, but investors don't need to know them all. They can pay attention to and compare accounts receivable, prepaid expenses, inventory, solvency and other subjects.
2. The income statement is the most direct and considerable data reflecting the profits and losses of listed companies, and also reflects the operating results and profits of enterprises in a certain period and whether the subsequent development can be sustained and realized. Investors can look at the company's net profit and total profit to see the company's operation. Net profit has been losing money for two consecutive years. Investors need to pay attention to whether there are problems in the company's performance and sales, or there is a risk of being eliminated by the market.
Investors can understand the balance sheet and income statement in financial statements, see the overall operation of the company, and decide whether the company is suitable for investment or long-term holding in combination with national policy direction and technical analysis.