From the course: Corporate Financial Statement Analysis

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Use AI analysis to detect ratio trends over time

Use AI analysis to detect ratio trends over time

From the course: Corporate Financial Statement Analysis

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Use AI analysis to detect ratio trends over time

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All businesses, large or small, periodically prepare financial statements so that interested parties can understand how the business is doing. Current owners, prospective investors, bankers, and others need up-to-date reports in order to compare and judge a company's financial position and operating results on a continuing, timely basis. Now, the financial picture of a company cannot really be complete until the life of the business is over, until all sales are final, all warranty obligations are satisfied, all accounts are collected, all assets, including land and building, have been liquidated, and all loans have been repaid. However, managers, owners, and creditors cannot wait 10, 20, or 100 years to receive an exact accounting of a business. For example, the Coca-Cola Company was incorporated in Atlanta in 1892 and is still going strong. But investors and bankers have been demanding and receiving financial information about Coca-Cola regularly for those 130 plus years. In order to…

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