In brief, financial statement analysis provides tools for understanding the financial performance and relevant metrics of an entity under examination. By performing financial statement analysis one can compare an entity’s previous performance to its present performance and can compare performance from one entity to another or across industries or segments. Financial statement analysis provides the practicing lawyer with tools to understand a client’s business so that he or she can better counsel and serve their client and compete in an environment where other attorneys seek to do the same.
I.Overview of the Financial Statement Analysis
a.What is it?
b.How Does it Work?
c.How is it and Can it be Used?
II.Key Financial Statement Ratios
b.Activities and Turnover
c.Capital Structure and Long-Term Risk
d.Profitability and Operational Efficiency
III. Conducting Financial Statement Analysis of Public Companies