Financial statement analysis - Analysis tools

3 important questions on Financial statement analysis - Analysis tools

When figures from differing time periods are placed together in columns, this is a:

Comparative financial statment

Four ways to compare figures on a comparative statement:

Dollar and percentage amount
Trend percentages (a particular base year is 100%)
Component percentages (subordinate items such as COGS as a percent of a total such as net sales)
Ratios

Three ways to determine how to judge figures in an analysis report

Industry standards
Past performance
Benchmark companies

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