Share these talks and lectures with your colleagues
Invite colleaguesWe noted you are experiencing viewing problems
-
Check with your IT department that JWPlatform, JWPlayer and Amazon AWS & CloudFront are not being blocked by your network. The relevant domains are *.jwplatform.com, *.jwpsrv.com, *.jwpcdn.com, jwpltx.com, jwpsrv.a.ssl.fastly.net, *.amazonaws.com and *.cloudfront.net. The relevant ports are 80 and 443.
-
Check the following talk links to see which ones work correctly:
Auto Mode
HTTP Progressive Download Send us your results from the above test links at access@hstalks.com and we will contact you with further advice on troubleshooting your viewing problems. -
No luck yet? More tips for troubleshooting viewing issues
-
Contact HST Support access@hstalks.com
-
Please review our troubleshooting guide for tips and advice on resolving your viewing problems.
-
For additional help, please don't hesitate to contact HST support access@hstalks.com
We hope you have enjoyed this limited-length demo
This is a limited length demo talk; you may
login or
review methods of
obtaining more access.
Printable Handouts
Navigable Slide Index
- Introduction
- Caveat
- Comparison
- Financial statement analysis
- Horizontal analysis
- Vertical analysis
- Ratio analysis
- Profitability ratios (1)
- Profitability ratios (2)
- Profitability ratios (3)
- Profitability ratios (4)
- Liquidity ratios (1)
- Liquidity ratios (2)
- Liquidity ratios (3)
- Liquidity ratios (4)
- Solvency ratios (1)
- Solvency ratios (2)
- Summary
This material is restricted to subscribers.
Topics Covered
- Auditor’s report
- Management discussion
- Analyst reports
- Media reports
- Macroeconomic reports
- Horizontal analysis
- Vertical analysis
- Ratio analysis
- Profitability ratios
- Liquidity ratios
- Solvency ratios
Talk Citation
Bond, D. (2017, April 30). Financial statement analysis [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved August 31, 2024, from https://doi.org/10.69645/WCPI4611.Export Citation (RIS)
Publication History
Other Talks in the Series: Analysing Financial Statements
Transcript
Please wait while the transcript is being prepared...
0:00
Hi and welcome to Part Nine:
Financial Statement Analysis
in this HS Talks lecture series
on Analyzing Financial Statements.
My name is David Bond.
Over the course of
the first eight parts,
we looked at the various steps
involved in preparing
financial statements.
And now we turn our attention
to how to use these financial statements
to analyze the health of an entity.
0:22
A caveat before we begin.
Financial statement analysis
is only one part of the toolkit
that can be used to assess a company.
There is a range of other information
in the annual report
including the auditor's report
and the management discussion
and analysis section.
In addition, annual reports
are only one source of information
about an entity,
especially if it is a listed company.
Listed companies are required to provide
regular updates to the market,
let alone other voluntary information
they may disclose.
There are also analyst and news reports,
as well as reports in data
about general macroeconomic conditions.
But in saying all of that,
an analysis of the financial statements
is still worthwhile,
and we'll look at
some of the main methods used.
1:05
To begin, all financial analysis
requires a point of comparison.
Working out that a company
has a 10% profit margin
doesn't really tell us anything
in isolation.
We probably would like to know
how that compares
to the profit margin from last year
to see whether they are improving
or getting worse.
We probably would also like to know
how they compare to other companies,
especially those in their industry.
This could be done by comparing them
to individual competitors
or industry averages.
1:33
There are three main types
of financial statement analysis
that we'll cover here being horizontal,
vertical, and ratio.
We'll start with horizontal.