Loading [MathJax]/jax/output/HTML-CSS/jax.js
Skip to main content
Library homepage
 

Text Color

Text Size

 

Margin Size

 

Font Type

Enable Dyslexic Font
Business LibreTexts

2: Financial Statement Analysis

( \newcommand{\kernel}{\mathrm{null}\,}\)

Learning Objectives

After completing this chapter, students should be able to

  • Discuss the purpose and key issues associated with the income statement, balance sheet, and statement of cash flows
  • Identify the three components of the statement of cash flows and interpret each of the three components
  • Calculate and interpret key financial ratios
  • Calculate and interpret a common size income statement and common size balance sheet
  • Discuss and apply the concept of trend analysis, including both its strengths and weaknesses
  • Discuss and apply the concept of comparative analysis, including both its strengths and weaknesses
  • Identify key users of financial statement analysis
  • Identify potential strengths and weaknesses for a firm, given financial statements for the firm and industry (or competitor)
  • Discuss and interpret the many issues associated with financial statement analysis (such as seasonality, context, etc.)


2: Financial Statement Analysis is shared under a CC BY-NC 4.0 license and was authored, remixed, and/or curated by LibreTexts.

Support Center

How can we help?