Understanding a company without reading its accounts is driving with your eyes closed. The good news: three documents are enough to form a solid first opinion. On the Casablanca exchange they are called the balance sheet, the CPC, and the ETIC.
The balance sheet: snapshot of net worth at a point in time
The balance sheet answers a simple question: what does the company own, and what does it owe? The asset column lists resources (cash, receivables, fixed assets). The liability column lists how those resources are funded (equity, financial debt, operating liabilities).
Three lines to prioritise: equity (the solidity gauge), net financial debt (debt minus available cash), and working-capital requirement (customer receivables minus supplier payables).
The CPC: the year's income statement
The Compte de Produits et Charges (CPC) tells the operating story over one fiscal year. It starts with revenue, deducts operating costs (purchases, wages, depreciation), gives the operating result, layers in financial and non-recurring items, deducts tax, and lands on net income.
A well-read CPC gives two key pieces of information: operating profitability (operating result over revenue) and net profitability (net income over revenue). Benchmark these ratios against the sector average rather than reading them in isolation.
The ETIC: the notes that explain the rest
The État des Informations Complémentaires (ETIC) is the most neglected and often the most useful document. It details the accounting methods chosen, off-balance-sheet commitments, ongoing litigation, executive remuneration, and related-party transactions. That is where the surprises live.
A serious investor spends at least fifteen minutes on the ETIC of a company they consider buying. Most do not — it is a free competitive edge.
Beyond the numbers: the management report
The accounts tell the past story. The management report that accompanies them tells the story as management sees it and signals what comes next. Read it for the stated strategy, the tone (cautious, optimistic, under pressure), and the listed risk factors.
In practice
The first read is always the hardest. After a few cycles you develop reflexes: spot drifting leverage, compressing margins, a change in accounting method. Consistency beats sophistication.