fundamental analysis is a technique to determine a security's on basis of factors

that affect a company's actual business and its future prospects. 

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Why do we use FA?

One of the primary assumptions of fundamental analysis is that the price on the
stock market does not fully reflect a stock's "real" value
true value is known as the intrinsic value.

 Is the company's revenue growing?

 Is it actually making a profit?
 Is it in a strong-enough position to beat out its competitors in the future?
 Is it able to repay its debts?
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Quantitative fundamentals are numeric, measurable characteristics about a

business. 
Qualitative analysis is the use of non-quantifiable methods to
evaluate investment or business opportunities and make decisions

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Income statements - It shows how much money the company generated (revenue),
how much it spent (expenses) and the difference between the two (profit) over a
certain time period. 

Operating activities are all the things a company does to bring its products and
services to market on an ongoing basis. Non-operating activities are one-time
events that may affect revenues, expenses or cash flow but fall outside of the
company’s routine, core business.

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The balance sheet, also known as the statement of financial condition, tells about
the company's health. It tells you how much a company owns (its assets), and how
much it owes (its liabilities). 

Current assets – Assets intended for sale or consumption, expected to be realized in

12 months.
Includes investments, trade recievables, cash equivalence, inventories

Non current assets – Long lived assets,

Long term loans, investments, fixed assets, deferred tax assets

Current liabilities – short term borrowing to be settled in 12 months

Non current – long term borrowing expected to settle after 1 year

cash flow statement shows how much cash comes in and goes out of the company
Operation -cash comes from sales of the company's goods and services
Investing –cash the company has spent on capital expenditures, such as new
equipment 
Financing - cash associated with outside financing activities

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Ratios
Liquidity – It refers to ability pf firm to meet its obligations in short run. It relates
current asset and liabilities
Leverage – It helps in assessing he risk arising from use of debt capital.
Structural and coverage ratio
Turnover ratio/ Activity ratio – It measures how efficiently assets are employed
by fund.
Profitability –Reflects final results of business operations. Profit margin ratio and
rate of retrun ratio. Profit margin = Profit –sales, Rate of return =Profit –
investments.
Valuation ratio –How the equity of company is assessed in capital market

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Depreciation – Reduction in the value of an asset over time

Amortization (or amortisation; see spelling differences) is paying off an amount

owed over time by making planned, incremental payments of principal and
interest. To amortize a loan means "to kill it off".