Analysis of Financial Statements Use the Internet or Strayer University Library databases to research instances when a company's financial ratios did not align with those of other firms that operate within the same industry. Post a Response Describe some different types of ratios and how they are used to assess performance. Explain the components of the formula and the order of operations to calculate them. Discuss what these ratios say about the financial health of the organization. Determine why it is sometimes misleading to compare a company's financial ratios with those of other firms that operate within the same industry. Support your response with an example from your research. Respond to a Peer Be sure to respond to at least one of your classmates' posts. Read a post by one of your peers and provide a substantive response, making sure to extend the conversation by asking questions, offering rich ideas, or sharing personal connections. Reply

Advantages and disadvantages of using financial statements as a tool to analyse the financial performance of a company.

1. Ratio analysis A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company's strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company's performance to that of its competitors or to its past or expected future performance. Such insight helps managers and analysts improve their decision making. Consider the following scenario: You work for a brokerage firm. Your boss asked you to analyze Blue Parrot Manufacturing's performance for the past three years and to write a report that includes a benchmarking of the company's performance. Which of the following components would be best for you to include in your financial statement analysis? A critique of the company's financial statements and a report of any misprints to be sent to the Securities and Exchange Commission A calculation of financial ratios and an evaluation of the…

There are different tools for analyzing the financial statements of a company, such as horizontal analysis, vertical analysis, ratios for measuring financial health, and so forth. But before we begin using these tools, it is important to know the purpose of each tool. Please discuss one of these tools.

Which of the following statements about GAAP is not true? O a. GAAP impacts how companies report and what they report. O b. GAAP allows a company's management to record and report data as it sees fit. O c. GAAP is the principles and assumptions that the management of a company uses to record and report its financial information. O d. GAAP is a standard set of principles and assumptions that allows for the comparison of financial performance.

Which of the following is FALSE regarding standardized financial statements? Balance sheets are standardized by dividing all accounts by equity. ()Standardized financial statements allow for trend analysis of a firm. Standardized financial statements are useful to analysts both inside and outside the firm. ) Income statements are standardized by dividing all values by revenue. Standardized financial statements allow comparison of firms in the same industry that are different in size. Previous Page Next Page Page 5 of 30 eavad

From curiosity, what graphs are made to indicate the financial performance of a company?

TRUE OR FALSE: Read each sentence carefully and determine whether the statement True or False. Write your answers in the space provided before the number. 1. Financial statement analysis uses computational and analytical techniques to evaluate the company's risks, performance, financial health, and future prospects with the objective of making economic decisions. 2. Return on asset is an operational efficiency ratio. 3. Profitability ratios measure the ability of the company's assets to generate sales. 4. Gross profit margin provides an indication of the company's average pricing policy 5. Given equal gross profit margin, the company with the lower operating income margin has higher operating expenses as a percentage of sales and has leaner operations. Written Works Below are the comparative Statement of Comprehensive Income & Statement of Financial Position of Ellane Company & Lanie Company: Statement of Comprehensive Income Ellane Company 2013 Melanie Company 2014 2013 2014 Net Sales…

Which statement below is NOT true? Common size balance sheet and common size income statement are used by financial analysts to: Compare companies of different sizes Compare one company's financial performance through time Provide a base for cross-industry analysis

What is the basic purpose for examining trends in a company’s financial ratios and other data? What other kinds of comparisons might an analyst make?