Analyzing financial statements involves evaluating three characteristics.
- Liquidity
- Profitability
- Solvency
Need for comparative analysis
- Intra-company basis
- Industry averages
- Inter-company basis
Tools of analysis
1.Horizontal analysis evaluates a series of financial statement data over a period of time.
2. Vertical analysis evaluates financial statement dat
D. Does the cash flows statement add any further information to that provided by the income statement or the balance sheet? Explain.
The statement of cash flows is needed to form a complete picture of the financial position of a company. It shows all the cash collected and all the cash disbursed during the period. And each cash flow relates to one of three business activities: operating, in
Measures overall success of the company
ROE is widely used measure of profitability
ROA = Net Income / Avg Total Asset
Can vary substantially and highly depends on the industry
Single most important factor in determining share’s price.
Important factor in determining price to earnings valuation ratios
Shows firm has enough short term assets to cover its immediate liabilities
This also
어느 나라 증권시장에서도 주가조작은 발생하고 있다. 세계에서 가장 엄격하게 증권시장을 규제하고 있으며, 또한 위법행위에 대해서 엄하게 책임을 묻고 있는 미국에서조차 주가조작은 흔히 발생하고 있다. 이는 주가조작 행위는 수많은 증권거래에 묻혀 쉽게 적발되지 않으며, 성공만 한다면 한 순
Recently, Abe's Shinzo's remarks about comfort women have been disputed. You might have heard about comfort women in history book. Comfort women are women who were forced to be Japanese sexual slaves during the Manchurian incident and the Pacific conflict. They were organized in the name of conducting war efficiently. But the term "comfort women" is misleading. The Japanese pressured the women to