Download - Financial St Analysis
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Common-Size and Index Analysis
financial &osition on a &artic$lar day
financial &osition on a &artic$lar day
Re(en$es and "x&enses
The Income Statement describes a com&any's re(en$es and ex&enses alon!
with the res$ltin! net income or loss o(er a &eriod of time d$e to o&eratin!
acti(ities
Scott's ca&ital by )*+*,,
The Statement of Chan!es in
"#$ity ex&lains chan!es in e#$ity from net income or net loss. and
e#$ity in/ected by the owner in b$siness and drawin!s for a
eriod of time
0hat yo$ need to &re&are Cash flow Statement1
C$rrent year's Balance Sheet and Income Statement and 2
Pre(io$s year's Balance Sheet
It is the key to &re&are the Financial Statements
It tells $s abo$t the
&olices and &ractices of
&olices and &ractices of
3istorical cost cost
4e&reciation nnn
of Statement Analysisof Statement Analysis
Trade CreditorsTrade Creditors -- Foc$s on the li#$idity of the firm
BondholdersBondholders -- Foc$s on the short and lon!-term cash flow of the firm
Statement Analysis cont--- Statement Analysis cont---
Government Government -- Foc$ses on the &re- tax &rofit for taxation &$r&ose
Spplires of fndsS
pplires of fnds -- Foc$s on the o&eratin! &rofit and lon!-term cash flows of the firm
Employees
of Statement Analysisof Statement Analysis
"lan"lan -- Foc$s on assessin! the c$rrent financial &osition and e(al$atin! &otential firm o&&ort$nities
needs of the firmneeds of the firm
Trend $ Seasonal Component Trend $ Seasonal Com
3ow m$ch f$ndin! will be re#$ired in the f$t$re1
Is there a seasonal com&onent1
* Analysis of the financial* Analysis of the financial
condition and &rofitabilitycondition and &rofitability
of the firmof the firm
* Analysis of the financial condition and &rofitability of the firm
: Analysis of the b$siness: Analysis of the b$siness
risk of the firmrisk of the firm
when determinin!
the financin!
needs of the firmneeds of the firm
* Analysis of the financial* Analysis of the financial
condition and &rofitabilitycondition and &rofitability
of the firmof the firm
: Analysis of the b$siness: Analysis of the b$siness
risk of the firmrisk of the firm
ca&italca&ital
needs of the firmneeds of the firm
* Analysis of the financial* Analysis of the financial
condition and &rofitabilitycondition and &rofitability
of the firmof the firm
: Analysis of the b$siness: Analysis of the b$siness
risk of the firmrisk of the firm
Ratio AnalysisRatio Analysis
Sheet *Asset Side+Sheet *Asset Side+
a, %ow the firm stands on
a specific date,
, (hat B( owned,
cstomers,
already paid,
to cash within . year,
', Acc, dedctions for
wear and tear,
Cash and C" ) ?, Acct Reccc :?; In(entories @?@ Pre&aid "x& dd
Acc$m Tax Pre&ay
8,
C$rrent AssetsC$rrent Assetsee )8+8?)8+8? Fixed Assets Cost.f f 8,:, 5ess< Acc 4e&r !! :*?. %et Fix Assets%et Fix Assets ) ,8) ,8 In(estment+ 5T , 9ther Assets+ 5T **: TotalTotal
AssetsAssets bb )*+8@? )*+8@?
Sheet *0iaility Side+Sheet *0iaility Side+
a, 1ote2 Assets 3
, (hat B( owed and
'oods and services,
', /ri'inal investment,
h, Earnin's reinvested,
%otes Payable ) *?, Acct Payablecc ?; Accr$ed Taxes dd 8@ 9ther Accr$ed 5iab dd 8,,
C$rrent 5iabC$rrent 5iab ee ) ,,) ,, 5on!-Term 4ebt f f :, Shareholders' "#$ity Com Stock )8 &ar. !! *,, Add Pd in Ca&ital !!*? Retained "arnin!s hh *8,
Total "#$ityTotal "#$ity ) )8+8:?8
+8:? Total 5iabD"#$ityTotal 5iabD"#$itya+ba+b )*+8@? )*+8@?
!ncome Statement !ncome Statement
over a time period,
, 9eceived2 or receivale2
f, Taxale income,
', Amont earned for
shareholders,
%et Sales ) *+*88 Cost of 7oods Sold bb 8+?? 7ross Profit ) @8* S7EA "x&enses cc ;,*
"BITd ) *8, Interest "x&ensee ?
"BT f f ) 88 Income Taxes @, "AT! )
?8 Cash 4i(idends : Increase in R"Increase in R" ))
: :
Basket 0onders Statement of "arnin!s in tho$sands.Basket 0onders Statement of "arnin!s in tho$sands.
An analysis of percenta'e financial statements where all
balance sheet items are di(ided by total assets and all income statement items are di(ided by
net sales or revenes
Si:e Balance SheetsSi:e Balance Sheets
Si:e Balance SheetsSi:e Balance Sheets
Si:e !ncome StatementsSi:e !ncome Statements
!ndex Analyses!ndex Analyses
An analysis of percenta'e financial statements where all balance sheet or income statement fi!$res for a
base year e#$al 8,,, &ercent. and s$bse#$ent financial statement
!ncome Statements!ncome Statements
The mostThe most
Types ofT
two acco$ntin! n$mbers and is
obtained by di(idin! one n$mber by the
other
External Comparisons andExternal Comparisons and
Sorces of !ndstry 9atiosSorces of !ndstry 9atios
"xam&les<
Standard andStandard and
Poor's SEP.Poor's SEP.
This in(ol(es com&arin! the ratios of one firm with those of similar similar firms or with
ind$stry a(era!es
com&are Ha&&les to a&&les
"a#istan"a#istan
Ka&an Credit Ratin! L (ital information ser(iceKa&an Credit Ratin! L (ital information ser(ice
KCR- =IS.KCR- =IS.
or Circlatin' Capital or Circlatin' Capital
%et workin! ca&ital is the excess of c$rrent%et workin! ca&ital is the excess of c$rrent
assets 9(er the c$rrent liabilitiesassets 9(er the c$rrent liabilities
)8+8? L ),, M )@?)8+8? L ),, M )@?
ComparisonsComparisons
The %0C is more than the ind$stry
C$rrent AssetsC$rrent Assets
C$rrent 5iabilitiesC$rrent 5iabilities
to co(er its c$rrent liabilities with its c$rrent assets
Balance Sheet Ratios
5i#$idity Ratios
)8+8?)8+8?
ComparisonsComparisons
Analysis Comparison Analysis Comparison
Acid-Test *@ic#+ Acid-Test
C$rrent 5iabilitiesC$rrent 5iabilities
c$rrent liabilities with its most li#$id
assets
ComparisonsComparisons
Analysis Comparison Analysis Comparison
Analysis Comparison Analysis Comparison
6-46
Smmary of the 0i5iditySmmary of the 0i5idity
9atio Comparisons9atio Comparisons
Stron! c$rrent ratio and weak acid-test ratio indicates a &otential &roblem in the in(entories acco$nt
%ote that this ind$stry has a relati(ely hi!h le(el of in(entories
9atio9atio B( B( !ndstry !ndstr
6-47
Smmary of the 0i5iditySmmary of the 0i5idity
Trend AnalysesTrend Analyses
The c$rrent ratio for the ind$stryind$stry has been risin! slowly at the same time the acid-test ratio has been relati(ely stable
This indicates that in(entoriesin(entories are a si!nificant &roblem for B( B(
et-to-Total-Assetset-to-Total-Assets
that are s$&&orted by debt financin!
Balance Sheet Ratios
Financial 5e(era!e Ratios
Total Capitali:ationTotal Capitali:ation
Total 4ebtTotal 4ebt
For Bas#et (onders
4ecember :8+ *,8, Shows the relati(e
im&ortance of lon!-term debt to the lon!-term financin! of the firm
Balance Sheet Ratios
Financial 5e(era!e Ratios
Total Ca&italization RatioTotal Ca&italization Ratio
interest char!es
Interest Co(era!e RatioInterest Co(era!e Ratio
Analysis Comparison Analysis Comparison
Trend AnalysisTrend Analysis
This indicates that low earnin!slow earnin!s "BIT. may be a &otential &roblem for B( B(
%ote+ we know that debt le(elsdebt le(els are in line with the ind$stryind$stry a(era!es
Ann$al %et Credit SalesAnn$al %et Credit Sales
Closin! Recei(ablesClosin! Recei(ables
s$ccessf$l the firm is in its collections
Income Statement D Balance Sheet
Ratios
' Collection "eriod
4ays in the Gear 4ays in the Gear Recei(able T$rno(er Recei(able T$rno(er
For Bas#et (onders 4ecember :8+ *,8,
A(era!e n$mber of days that recei(ables are
o$tstandin!
Ratios
A(era!e Collection Period in daysA(era!e Collection Period in days
"ayale Trnover *"T+"ayale Trnover *"T+
Ann$al Credit P$rchasesAnn$al Credit P$rchases
Closin! PayableClosin! Payable
&rom&tness of &ayment to s$&&liers by the firm
Income Statement D Balance Sheet
Ratios
Payable T$rno(er Payable T$rno(er
For Bas#et (onders
that &ayables are o$tstandin!
Ratios
B0 has im&ro(ed the PT in 4ays
Is this !ood1Is this !ood1
Closin! In(entoryClosin! In(entory
effecti(eness of the in(entory mana!ement &ractices of the firm
Ratios
In(entory T$rno(er In(entory T$rno(er
For Bas#et (onders
that &ayables are o$tstandin!
Ratios
B0 has im&ro(ed the PT in 4ays
Is this !ood1Is this !ood1
--Trend Analysis--Trend Analysis
%et Sales%et Sales
effecti(eness of the firm in $tilizin! its assets to
!enerate sales
Ratios
B0 has a weak total asset t$rno(er ratio
%et Sales%et Sales
For Bas#et (onders
4ecember :8+ *,8, Indicates the efficiency of o&erations and firm
&ricin! &olicies
Ratios
B0 has a weak 7ross Profit 6ar!in
Trend Analysis ComparisonTrend Analysis Comparison
Trend Analysis ComparisonTrend Analysis Comparison
%et Sales%et Sales
For Bas#et (onders
&rofitability after takin! acco$nt of all ex&enses
and income taxes
Ratios
B0 has a &oor %et Profit 6ar!in
Trend Analysis ComparisonTrend Analysis Comparison
9etrn on !nvestment 9etrn on !nvestment
%et Profit after Taxes%et Profit after Taxes
Total AssetsTotal Assets
For Bas#et (onders
4ecember :8+ *,8,Indicates the &rofitability on the assets of the firm after all ex&enses and
taxes.
Ratios
B0 has a &oor Ret$rn on In(estment
Trend Analysis ComparisonTrend Analysis Comparison
9etrn on E5ity 9etrn on E
Shareholders' "#$ityShareholders' "#$ity
the firm after all ex&enses and taxes.
Ratios
B0 has a &oor Ret$rn on "#$ity
9etrn on E5ity -- 9etrn on E5ity --
Trend Analysis ComparisonTrend Analysis Comparison
the "ont Approachthe "ont Approach
R9IR9I*,8, M ,;8 x 8,* M ,;*,;* or ;*>;*>
R9IR9IInd$stry M ,* x 88 M ,?,? or ?>?>
R9IR9I M %et &rofit mar!in O Total asset t$rno(er
"arnin! Power"arnin! Power M Sales &rofitability O Asset efficiency
6-83
9etrn on E5ity and9etrn on E5ity and
the "ont Approachthe "ont Approach
R9"R9"*,8, M ,;8 x 8,* x 8?, M ,,,,
R9"R9"Ind$stry M ,* x 88 x 8 M 8?8?
Ret$rn 9n "#$ityRet$rn 9n "#$ity M %et &rofit mar!in O Total asset t$rno(er O
"#$ity 6$lti&lier
Shareholders' "#$ity
6-84
Smmary of the "rofitailitySmmary of the "rofitaility
Trend AnalysesTrend Analyses
The &rofitability ratios for B( B( ha(e A00 been fallin! since *,, "ach has been below the ind$stryind$stry a(era!es for the &ast three years
This indicates that C97SC97S and administrati(e costsadministrati(e costs may both be too hi!h and a &otential &roblem for B( B(
In(entories are too hi!h
C97S may be too hi!h
Sellin!+ !eneral+ and administrati(e costs may be too hi!h
"arnin! &er share "PS.
4i(idend &er share 4PS.
6arket to Book (al$e &er share ratio
0hat is meant by Financial Statements analysis1
@ic# @i: @ic# @i:
0hy it is essential to ha(e some framework in mind+ for the &$r&ose of Financial Statements analysis1
financial &osition on a &artic$lar day
financial &osition on a &artic$lar day
Re(en$es and "x&enses
The Income Statement describes a com&any's re(en$es and ex&enses alon!
with the res$ltin! net income or loss o(er a &eriod of time d$e to o&eratin!
acti(ities
Scott's ca&ital by )*+*,,
The Statement of Chan!es in
"#$ity ex&lains chan!es in e#$ity from net income or net loss. and
e#$ity in/ected by the owner in b$siness and drawin!s for a
eriod of time
0hat yo$ need to &re&are Cash flow Statement1
C$rrent year's Balance Sheet and Income Statement and 2
Pre(io$s year's Balance Sheet
It is the key to &re&are the Financial Statements
It tells $s abo$t the
&olices and &ractices of
&olices and &ractices of
3istorical cost cost
4e&reciation nnn
of Statement Analysisof Statement Analysis
Trade CreditorsTrade Creditors -- Foc$s on the li#$idity of the firm
BondholdersBondholders -- Foc$s on the short and lon!-term cash flow of the firm
Statement Analysis cont--- Statement Analysis cont---
Government Government -- Foc$ses on the &re- tax &rofit for taxation &$r&ose
Spplires of fndsS
pplires of fnds -- Foc$s on the o&eratin! &rofit and lon!-term cash flows of the firm
Employees
of Statement Analysisof Statement Analysis
"lan"lan -- Foc$s on assessin! the c$rrent financial &osition and e(al$atin! &otential firm o&&ort$nities
needs of the firmneeds of the firm
Trend $ Seasonal Component Trend $ Seasonal Com
3ow m$ch f$ndin! will be re#$ired in the f$t$re1
Is there a seasonal com&onent1
* Analysis of the financial* Analysis of the financial
condition and &rofitabilitycondition and &rofitability
of the firmof the firm
* Analysis of the financial condition and &rofitability of the firm
: Analysis of the b$siness: Analysis of the b$siness
risk of the firmrisk of the firm
when determinin!
the financin!
needs of the firmneeds of the firm
* Analysis of the financial* Analysis of the financial
condition and &rofitabilitycondition and &rofitability
of the firmof the firm
: Analysis of the b$siness: Analysis of the b$siness
risk of the firmrisk of the firm
ca&italca&ital
needs of the firmneeds of the firm
* Analysis of the financial* Analysis of the financial
condition and &rofitabilitycondition and &rofitability
of the firmof the firm
: Analysis of the b$siness: Analysis of the b$siness
risk of the firmrisk of the firm
Ratio AnalysisRatio Analysis
Sheet *Asset Side+Sheet *Asset Side+
a, %ow the firm stands on
a specific date,
, (hat B( owned,
cstomers,
already paid,
to cash within . year,
', Acc, dedctions for
wear and tear,
Cash and C" ) ?, Acct Reccc :?; In(entories @?@ Pre&aid "x& dd
Acc$m Tax Pre&ay
8,
C$rrent AssetsC$rrent Assetsee )8+8?)8+8? Fixed Assets Cost.f f 8,:, 5ess< Acc 4e&r !! :*?. %et Fix Assets%et Fix Assets ) ,8) ,8 In(estment+ 5T , 9ther Assets+ 5T **: TotalTotal
AssetsAssets bb )*+8@? )*+8@?
Sheet *0iaility Side+Sheet *0iaility Side+
a, 1ote2 Assets 3
, (hat B( owed and
'oods and services,
', /ri'inal investment,
h, Earnin's reinvested,
%otes Payable ) *?, Acct Payablecc ?; Accr$ed Taxes dd 8@ 9ther Accr$ed 5iab dd 8,,
C$rrent 5iabC$rrent 5iab ee ) ,,) ,, 5on!-Term 4ebt f f :, Shareholders' "#$ity Com Stock )8 &ar. !! *,, Add Pd in Ca&ital !!*? Retained "arnin!s hh *8,
Total "#$ityTotal "#$ity ) )8+8:?8
+8:? Total 5iabD"#$ityTotal 5iabD"#$itya+ba+b )*+8@? )*+8@?
!ncome Statement !ncome Statement
over a time period,
, 9eceived2 or receivale2
f, Taxale income,
', Amont earned for
shareholders,
%et Sales ) *+*88 Cost of 7oods Sold bb 8+?? 7ross Profit ) @8* S7EA "x&enses cc ;,*
"BITd ) *8, Interest "x&ensee ?
"BT f f ) 88 Income Taxes @, "AT! )
?8 Cash 4i(idends : Increase in R"Increase in R" ))
: :
Basket 0onders Statement of "arnin!s in tho$sands.Basket 0onders Statement of "arnin!s in tho$sands.
An analysis of percenta'e financial statements where all
balance sheet items are di(ided by total assets and all income statement items are di(ided by
net sales or revenes
Si:e Balance SheetsSi:e Balance Sheets
Si:e Balance SheetsSi:e Balance Sheets
Si:e !ncome StatementsSi:e !ncome Statements
!ndex Analyses!ndex Analyses
An analysis of percenta'e financial statements where all balance sheet or income statement fi!$res for a
base year e#$al 8,,, &ercent. and s$bse#$ent financial statement
!ncome Statements!ncome Statements
The mostThe most
Types ofT
two acco$ntin! n$mbers and is
obtained by di(idin! one n$mber by the
other
External Comparisons andExternal Comparisons and
Sorces of !ndstry 9atiosSorces of !ndstry 9atios
"xam&les<
Standard andStandard and
Poor's SEP.Poor's SEP.
This in(ol(es com&arin! the ratios of one firm with those of similar similar firms or with
ind$stry a(era!es
com&are Ha&&les to a&&les
"a#istan"a#istan
Ka&an Credit Ratin! L (ital information ser(iceKa&an Credit Ratin! L (ital information ser(ice
KCR- =IS.KCR- =IS.
or Circlatin' Capital or Circlatin' Capital
%et workin! ca&ital is the excess of c$rrent%et workin! ca&ital is the excess of c$rrent
assets 9(er the c$rrent liabilitiesassets 9(er the c$rrent liabilities
)8+8? L ),, M )@?)8+8? L ),, M )@?
ComparisonsComparisons
The %0C is more than the ind$stry
C$rrent AssetsC$rrent Assets
C$rrent 5iabilitiesC$rrent 5iabilities
to co(er its c$rrent liabilities with its c$rrent assets
Balance Sheet Ratios
5i#$idity Ratios
)8+8?)8+8?
ComparisonsComparisons
Analysis Comparison Analysis Comparison
Acid-Test *@ic#+ Acid-Test
C$rrent 5iabilitiesC$rrent 5iabilities
c$rrent liabilities with its most li#$id
assets
ComparisonsComparisons
Analysis Comparison Analysis Comparison
Analysis Comparison Analysis Comparison
6-46
Smmary of the 0i5iditySmmary of the 0i5idity
9atio Comparisons9atio Comparisons
Stron! c$rrent ratio and weak acid-test ratio indicates a &otential &roblem in the in(entories acco$nt
%ote that this ind$stry has a relati(ely hi!h le(el of in(entories
9atio9atio B( B( !ndstry !ndstr
6-47
Smmary of the 0i5iditySmmary of the 0i5idity
Trend AnalysesTrend Analyses
The c$rrent ratio for the ind$stryind$stry has been risin! slowly at the same time the acid-test ratio has been relati(ely stable
This indicates that in(entoriesin(entories are a si!nificant &roblem for B( B(
et-to-Total-Assetset-to-Total-Assets
that are s$&&orted by debt financin!
Balance Sheet Ratios
Financial 5e(era!e Ratios
Total Capitali:ationTotal Capitali:ation
Total 4ebtTotal 4ebt
For Bas#et (onders
4ecember :8+ *,8, Shows the relati(e
im&ortance of lon!-term debt to the lon!-term financin! of the firm
Balance Sheet Ratios
Financial 5e(era!e Ratios
Total Ca&italization RatioTotal Ca&italization Ratio
interest char!es
Interest Co(era!e RatioInterest Co(era!e Ratio
Analysis Comparison Analysis Comparison
Trend AnalysisTrend Analysis
This indicates that low earnin!slow earnin!s "BIT. may be a &otential &roblem for B( B(
%ote+ we know that debt le(elsdebt le(els are in line with the ind$stryind$stry a(era!es
Ann$al %et Credit SalesAnn$al %et Credit Sales
Closin! Recei(ablesClosin! Recei(ables
s$ccessf$l the firm is in its collections
Income Statement D Balance Sheet
Ratios
' Collection "eriod
4ays in the Gear 4ays in the Gear Recei(able T$rno(er Recei(able T$rno(er
For Bas#et (onders 4ecember :8+ *,8,
A(era!e n$mber of days that recei(ables are
o$tstandin!
Ratios
A(era!e Collection Period in daysA(era!e Collection Period in days
"ayale Trnover *"T+"ayale Trnover *"T+
Ann$al Credit P$rchasesAnn$al Credit P$rchases
Closin! PayableClosin! Payable
&rom&tness of &ayment to s$&&liers by the firm
Income Statement D Balance Sheet
Ratios
Payable T$rno(er Payable T$rno(er
For Bas#et (onders
that &ayables are o$tstandin!
Ratios
B0 has im&ro(ed the PT in 4ays
Is this !ood1Is this !ood1
Closin! In(entoryClosin! In(entory
effecti(eness of the in(entory mana!ement &ractices of the firm
Ratios
In(entory T$rno(er In(entory T$rno(er
For Bas#et (onders
that &ayables are o$tstandin!
Ratios
B0 has im&ro(ed the PT in 4ays
Is this !ood1Is this !ood1
--Trend Analysis--Trend Analysis
%et Sales%et Sales
effecti(eness of the firm in $tilizin! its assets to
!enerate sales
Ratios
B0 has a weak total asset t$rno(er ratio
%et Sales%et Sales
For Bas#et (onders
4ecember :8+ *,8, Indicates the efficiency of o&erations and firm
&ricin! &olicies
Ratios
B0 has a weak 7ross Profit 6ar!in
Trend Analysis ComparisonTrend Analysis Comparison
Trend Analysis ComparisonTrend Analysis Comparison
%et Sales%et Sales
For Bas#et (onders
&rofitability after takin! acco$nt of all ex&enses
and income taxes
Ratios
B0 has a &oor %et Profit 6ar!in
Trend Analysis ComparisonTrend Analysis Comparison
9etrn on !nvestment 9etrn on !nvestment
%et Profit after Taxes%et Profit after Taxes
Total AssetsTotal Assets
For Bas#et (onders
4ecember :8+ *,8,Indicates the &rofitability on the assets of the firm after all ex&enses and
taxes.
Ratios
B0 has a &oor Ret$rn on In(estment
Trend Analysis ComparisonTrend Analysis Comparison
9etrn on E5ity 9etrn on E
Shareholders' "#$ityShareholders' "#$ity
the firm after all ex&enses and taxes.
Ratios
B0 has a &oor Ret$rn on "#$ity
9etrn on E5ity -- 9etrn on E5ity --
Trend Analysis ComparisonTrend Analysis Comparison
the "ont Approachthe "ont Approach
R9IR9I*,8, M ,;8 x 8,* M ,;*,;* or ;*>;*>
R9IR9IInd$stry M ,* x 88 M ,?,? or ?>?>
R9IR9I M %et &rofit mar!in O Total asset t$rno(er
"arnin! Power"arnin! Power M Sales &rofitability O Asset efficiency
6-83
9etrn on E5ity and9etrn on E5ity and
the "ont Approachthe "ont Approach
R9"R9"*,8, M ,;8 x 8,* x 8?, M ,,,,
R9"R9"Ind$stry M ,* x 88 x 8 M 8?8?
Ret$rn 9n "#$ityRet$rn 9n "#$ity M %et &rofit mar!in O Total asset t$rno(er O
"#$ity 6$lti&lier
Shareholders' "#$ity
6-84
Smmary of the "rofitailitySmmary of the "rofitaility
Trend AnalysesTrend Analyses
The &rofitability ratios for B( B( ha(e A00 been fallin! since *,, "ach has been below the ind$stryind$stry a(era!es for the &ast three years
This indicates that C97SC97S and administrati(e costsadministrati(e costs may both be too hi!h and a &otential &roblem for B( B(
In(entories are too hi!h
C97S may be too hi!h
Sellin!+ !eneral+ and administrati(e costs may be too hi!h
"arnin! &er share "PS.
4i(idend &er share 4PS.
6arket to Book (al$e &er share ratio
0hat is meant by Financial Statements analysis1
@ic# @i: @ic# @i:
0hy it is essential to ha(e some framework in mind+ for the &$r&ose of Financial Statements analysis1