Your financial analysis report is generated while you are online:
Your VentureLine financial analysis tool assists you in looking deep within officially filed quarterly and annual financial statements of two publicly held companies. The resulting analysis provides critical information, on a comparative basis to determine how well or poorly the companies have performed over the time periods in question.
This financial statement analysis provides you insight into the companies analyzed, i.e., which one should you buy or sell? A printable report is generated while you are on-line so that you can immediately compare the companies selected.
This 5-year financial statement analysis provides you a comparative analysis: Financial Ratios (28 of the most useful ratios), Sustainable Growth Rate, and an "Altman Z Score" potential for bankruptcy analysis. Included is a 5-year common size financial statement.
Your financial analysis report is broken down into the various ratio categories:
In assessing the significance of various financial data, experts engage in financial ratios analysis, the process of determining and evaluating financial ratios. A financial ratio is a relationship that indicates something about a company's activities, such as the ratio between the company's current assets and current liabilities or between its accounts receivable and its annual sales. The basic source for these ratios is the company's financial statements that contain figures on assets, liabilities, profits, and losses. Ratios are only meaningful when compared with other information. Since they are most often compared with industry data, ratios help an individual understand a company's performance relative to that of competitors and are often used to trace performance over time.
Ratio analysis can reveal much about a company and its operations. However, there are several points to keep in mind about ratios. First, financial ratios are "flags" indicating areas of strength or weakness. One or even several ratios might be misleading, but when combined with other knowledge of a company's management and economic circumstances, ratio analysis can tell much about a corporation. Second, there is no single correct value for a ratio. The observation that the value of a particular ratio is too high, too low, or just right depends on the perspective of the analyst and on the company's competitive strategy. Third, a financial ratio is meaningful only when it is compared with some standard, such as an industry trend, ratio trend, a ratio trend for the specific company being analyzed, or a stated management objective.
In trend analysis, ratios are compared over time, typically years. Year-to-year comparisons can highlight trends and point up the need for action. Trend analysis works best with five years of ratios.
The second type of ratio analysis (cross-sectional analysis), as in this report, compares the financial ratios of two or more companies in similar lines of business. One of the most popular forms of cross-sectional analysis compares a company's financial ratios to industry averages.