To understand the financial statements of listed companies, you must first have a good foundation of financial knowledge. Not only do you have to understand what income is and what profit is as simple as that, but you also have to understand what liquidity ratio is and cash flow ratio is. Even if you understand all the concepts, you only have a little knowledge of the financial statements of listed companies. Therefore, you should also have some basic financial analysis skills, and know what contributes to the enterprise value and what looks good is actually meaningless. For example, inventory accounts receivable and prepaid goods goodwill assets look good, but in fact they are probably zero. For example, if a company achieves an operating income of 10 billion and a profit of 2 billion, but its long-term accounts receivable are 5 billion or even more than its operating income, this is a big mine. Once it can&;t be recovered, in fact, it will definitely not be recovered. All losses must be accrued and the income will be zero. As for whether we can really understand the business situation of the enterprise through the financial statements, this should be analyzed in detail. Some enterprises, that is, those good enterprises, can be roughly understood by means of financial statements. However, there are quite a few companies that are committed to cheating themselves. In fact, there are many such companies on the Shenzhen and Shanghai stock exchanges. You may not be able to understand the accounts they make at first, and then you may not be able to understand the company&;s situation after you understand them. You are lucky to see flowers in the fog, otherwise you may even get flowers, and all you see is a fog. What do you say? If this is the case.