A guide for engineers on reading company financial statements, focused on profitability metrics. Covers how to find SEC filings (10-K, 10-Q) and earnings releases, explains the difference between gross margin, operating margin, and net margin, and shows how to calculate each from income statement line items. Uses semiconductor companies (Intel, National Semiconductor, International Rectifier, etc.) from 2001–2008 as concrete examples, with real numbers. Also explains why these ratios matter for stock valuation and acquisition risk, noting that lower-margin companies in the dataset were eventually acquired.
