Answer to Question #266002 in Management for Riya

Question

Discuss the steps of performing trend analysis on the financial statements of any

company.

Download the Balance sheet of any company of your interest from the open sources.

Perform the comparative analysis of that Balance sheet and discuss your findings.

Hint to attempt: to choose a company from open source- type the name of the company

in the web page.

Download the annual report as available, latest. Identify the relevant data, and then

perform comparative analysis of Balance Sheet of the company

Answer 1

The steps followed in analyzing the financial statements of companies through balance sheets are; Identification of the industry economic characteristics, identification of the company strategies, assessing of the quality of the firm's financial statements, analyzing of current profitability and risk, preparation of the forecasted financial statements and analyzing value the firm.