PROCESS OF PERFORMING FINANCIAL ANALYSIS OF A PUBLIC COMPANY
DOWN IN THE DETAILED OF THE AGGREGATE FINANCIALS
a. Income Statement
b. Balance Sheet
c. Statement of Cash Flow
2. Derive common size statements for the income statement and the balance sheet NOT
the cash flow
a. Looking at trends in the data
b. Looking at variations in the same data as well as variations in the trends
ECONOMIC COMPONENT
3. How does the above relate to the industry that the company is in. i.e. need to perform
competitive economic analysis about the company:
a. Macroeconomic analysis-is the company’s sales cyclical or counter cyclical for
example?
b. Industry analysis-market share. is the company’s sales growing, declining, or
staying the same? How is the company performing relative to its competition?
