How to read a company
From the statements to the ratios — what the numbers actually say.
- Who it is for
- For the curious reader who wants to understand analysis, not receive a ready-made idea.
- What you will understand
- You will understand where P/E, PEG and dividend yield come from, and where each of them misleads.
You tick a step yourself when you are ready — nothing is tracked automatically.
- Step 1 of 8Article10 min
How to read a financial statement
Why this step: Every ratio is a fraction built from two lines in the statements.
You will understand: What the three statements are and what each of them shows.
- Step 2 of 8Term3 min
EPS: earnings per share
Why this step: The denominator of the most widely used ratio.
You will understand: How it is formed and why dilution matters.
- Step 3 of 8Article8 min
The P/E ratio for beginners
Why this step: The most quoted number and the most misread one.
You will understand: What a P/E compares and when the comparison is meaningless.
- Step 4 of 8Article8 min
PEG and Peter Lynch
Why this step: PEG adds growth to the picture — with all of its caveats.
You will understand: Where the threshold of 1 comes from and why it is not a law.
- Step 5 of 8Calculator6 min
Calculator: PEG
Why this step: The arithmetic is simple; its sensitivity to the growth forecast is not.
You will understand: How far PEG moves on a small change in expected growth.
- Step 6 of 8Article8 min
The dividend trap
Why this step: A high yield is sometimes a symptom rather than a reward.
You will understand: How to tell a sustainable payout from one that is running out.
- Step 7 of 8Term4 min
Dickinson's life-cycle phases
Why this step: Cash flows place a company somewhere in its life cycle.
You will understand: How the signs of the three cash flows determine the phase.
- Step 8 of 8Calculator8 min
Calculator: cycle profile
Why this step: The final step ties a firm's phase to the macroeconomic cycle.
You will understand: How a recession shifts the distribution of phases.
15 points per step, 50 for finishing a path. Progress is kept in this browser only — no account, no server. One click in the progress panel clears it.
The paths are educational. Nothing in them is investment advice, a recommendation for any specific product, or an invitation to transact.