Profit Isn't Cash: A Three-Statement Research Note

Before copying a number into your company research, write down which statement it came from and what time frame it describes. This small step makes the note easier to check later.

Three financial statements: a balance sheet describes a date; income and cash flow statements describe a period. Check the source and time frame before comparing notes.
Three statements, three different questions. Tap the graphic to view it at full size. Educational graphic by the MerlaTech team, prepared with AI assistance; not an app screenshot.

Three questions to keep separate

  • Balance sheet: What assets, obligations and equity are reported at the stated date?
  • Income statement: What revenue, expenses and profit or loss are reported for the stated period?
  • Cash flow statement: How did cash move through operating, investing and financing activities during that period?

A profit figure does not describe the same thing as cash generated. A balance-sheet date also describes a different time frame from a quarter or year of activity. These three statements are a starting point; companies also report changes in shareholders' equity. This distinction follows the SEC's introductory guide to financial statements.

Copy this blank note

Use the same headings for each company. Leave a field blank when you cannot verify it; a missing number is not zero.

Company / ticker:
Question I am researching:
Source URL:
Document title and publication date:
Statement name:
Balance-sheet date OR period start and end:
Metric name as written in the source:
Reported value, currency and unit:
Relevant footnote / source location:
What I observed:
My interpretation (separate from the observation):
What I still need to verify:

A short check before comparing notes

  1. Open both original sources beside your notes.
  2. Confirm that the metric names, reporting periods, currencies and units are actually comparable. Keep any differences visible.
  3. If a field is ambiguous, mark it as unresolved and record the next source to check.

For a wider comparison, use our existing free three-company research worksheet. The note above can also be copied into any notes app, without installing our product.

More practical research guides

We are the MerlaTech team. Our YouTube channel shares concise research checklists and clearly labeled interface tutorials. Follow if that is useful to your research routine.

Our Android app, Stock Analysis: AI Signals, uses an English interface and includes in-app purchases and subscription features. This article is general education, not a recommendation to buy or sell a security or personalized investment advice. Prepared with AI assistance; no company figures or investment outcomes are asserted.

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