CHAPTER 3

Financial Statement Analysis

About This chapter

To conduct any analysis of a company’s financial statements, you need to have a basic understanding of the information it is giving. The names of the financial statements demonstrate their purpose and we explained these in Chapter 2. At this stage, we are going to expand on our explanations before demonstrating how to analyze the information.

In the first part of this chapter, we give extracts from three major companies in three different countries. We have selected only those items that we consider important for our analysis but we provide the website link if you wish to make a fuller examination. As you become more experienced, you will be able to conduct more sophisticated analysis. ...

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