Financial Statement Analysis - Essay Example

Only on StudentShare

Extract of sample
Financial Statement Analysis

For this reason, the actual presentation of financial statements with the absolute figures becomes meaningless as it does not provide a rational basis for comparing with the competitor or with the industry. The industry and competitor might have several differences due to which it is not practically justified that the analysis between the two should be made. For instance, if a company has revenues of $5 million and one of its competitors has the revenues of $500,000 then on the basis of these absolute figures, there is no comparison between the two companies. However, if the growth in revenue of the former company is, let’s say 6% and the latter company has growth in revenues of around 8%, then there is a rationale of analyzing both the companies as the same footing for comparison is available now. In short, in the absence of reasonable commonalities between the financial aspects of the two companies, the comparison of the two companies turns out to be meaningless. The best way to make a comparison in financial aspect between the two companies is to undertake financial ratio analysis. This analysis provides a common platform for the companies so that their performance can be compared on reasonable basis. ...Show more

Summary

Profitability Analysis – Sainsbury PLC v/s Tesco PLC Introduction The preparation and developments of financial statements are carried out in order to provide a true picture of the company regarding its financial performance and position. What company achieved, what company lost and what company maintained in financial aspects, all are presented under financial statements of a company…
Author : ubaldogreenfeld
Financial Statement Analysis essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial Statement Analysis"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial statement analysis
The ratio analysis has been performed with the help of the financial information present in the company’s financial statements. Different types of ratios have been calculated and divided into three categories, namely, liquidity ratios, activity ratios and profitability ratios.
7 pages (1750 words) Essay
Valuation Financial statement analysis
It was incorporated in the United Kingdom and trades its shares in the London Stock Exchange (LSE). The company dates back to 1885, when William Lever together with his brother established a soap manufacturing company and named it Lever Brothers. They started by manufacturing Sunlight, the first packaged soap which was very successful upon being launched in the market.
4 pages (1000 words) Essay
Financial Statement Analysis
Vodafone’s profitability is obviously less desirable than France Telecom. Based on net profit margin for years 2006, 2005, 2004 and
6 pages (1500 words) Essay
Financial Statement Analysis
Task II contains the comparative financial analysis of both companies under three sub- headings, namely, profitability, liquidity, and activity performance (that also include an
18 pages (4500 words) Essay
Financial Statement Analysis
According to the discussion financial statement analysis is differentiated from other approaches fundamentally because its main function is to assess the financial condition of an organization based on its financial statement. Several types of analyses can explain an organization’s financial condition.
3 pages (750 words) Essay
Financial statement analysis: assets
Each proposal is evaluated for ethical basis. This is unethical as it misrepresents the actual stature of the company. Its gives a false sense of security. The overdue accounts will appear
1 pages (250 words) Essay
Financial Statement Analysis & Security Valuation
This enables the company to align corporate and supply strategies1. The requirement strategies base several guidelines. One base on the financial or the amount they spent and the others capitalizes on the reducing risk, use of the emergent
6 pages (1500 words) Essay
Financial statement analysis
In addition, Boeing has a focus on the defense sector and at the same time through its subsidiary, Boeing Capital the business finances airplanes. Looking at both the current and cash ratios for S&S Air, we find that they are slightly below the
3 pages (750 words) Essay
Financial Statement Analysis
Financial statements of one accounting period must be comparable to other financial statements in order for the financial statement users to be able to derive meaningful conclusions concerning the trends of the financial position. It is very important for investors to have comparable financial information to make an optimal investment decision.
17 pages (4250 words) Essay
Financial Statement Analysis
The aim of this essay is to identify and select any two companies from the same industry and perform financial analysis of their past four years with a view to evaluating such published accounts. For clarity to be attained, this essay will use
10 pages (2500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT