Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Winston Kwok, Ph.D., CA
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Application of analytical tools
Involves transformin g data
Financial statement analysis helps users make better decisions.
Internal Users Managers Officers
External Users Shareholders Lenders Customers
Building Blocks ofAnalysis
Liquidity and efficiency
1. Statement of Profit or Loss and Other Comprehensive Income (Income Statement)
2. Statement of Financial Position 3. Statement of Changes in Equity 4. Statement of Cash Flows
5. Notes to the Financial Statements
Standards for Comparison
When we interpret our analysis, it is essential to compare the results we obtained
to other standards or benchmarks.
Intracompany Competitors Industry Guidelines