Financial Statement Analysis
3.5a Vertical Analysis
Vertical analysis
FIGURE 3.9 Vertical Analysis of a Financial Statement
3.5b Horizontal Analysis
Horizontal analysis
FIGURE 3.10 Horizontal Analysis of a Financial Statement
3.5c Ratio Analysis of Financial Statements
Ratio analysis
FI G U R E 3.11 Types of Ratio Analysis
Profitability ratios
Profitability ratios
Liquidity ratios
Activity ratios
Leverage ratios
Coverage ratios
3.5d Time Series and Cross-Sectional Analysis
Time series analysis
Cross-sectional analysis
How can time series and cross-sectional data help analysts understand a company’s performance?
3.5e The Value of Ratios as a Tool for Analysis
Why is it useful to be able to understand how well a company is performing?
In the sections that follow, several ratios