information if “[t]here is a substantial like likelihood that a reasonable investor would have found the omitted information important or that the missing facts would have altered the ‘total mix’ of information available to the investor.” Thus, a matter is generally thought of as “material” if a prudent investor would reasonably want to know about it. Size of the company could be rele
Concept
Financial statement analysis (or financial analysis) is the process of understanding the risk and profitability of a firm (business, sub-business or project) through analysis of reported financial information, particularly annual and quarterly reports.
Analyzing financial statements involves evaluating 3 Characteristics – a company’s liquidity, Profitability, and solvency.
financial state of Southwest Airlines by the annual report of 2010. We find 10 important numbers and 5 ratios by analyzing the finance reports. In these reports, we focus on the income statement. We will track down the changes by comparing the income statement from 2009 and 2010. Also we use the financial information in Reuter to find more detailed information.
To catch up the cash flow, we st
may not consider this to be particularly meaningful, but it is an interesting way to look at the taxes we pay. Even though our financial results were solid, I would characterize the year as good overall, but not great. The year started strong with earnings growing faster than revenue, but we struggled in the second half due to slower-than-planned sales and higher-than-normal apparel markdowns.