From the course: Corporate Financial Statement Analysis

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Use AI to common-size financial statements

Use AI to common-size financial statements

From the course: Corporate Financial Statement Analysis

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Use AI to common-size financial statements

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I asked Chet GPT this question. How can artificial intelligence be used to conduct a common size financial statement comparison of two companies in the same industry? Here is the answer that I got, word for word. Artificial intelligence can start by extracting the necessary financial statement information from annual reports, SEC filings, and other sources. AI can then do the common-size calculations. And rather than compare just two companies in the same industry, AI can look through all companies in the same industry to identify which one seems to be the best strategic match to the company of interest. AI can also evaluate company press releases and earnings calls to determine whether company explanations of financial statement trends are actually consistent with the observed data. Also using the vast cache of historical financial statement data available online, AI can give an overall assessment of the financial health of a given company in light of what has been observed in the…

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