Ideal Comparative Financial Statement Analysis Of Two Companies

Miller Electronics Corporation Comparative Income Statement For Years Ended December 31 20-2 and 20-1 20-2 20-1 Net Sales all on account 650220.

Comparative financial statement analysis of two companies. Both internal management and external users such as analysts creditors and investors of the financial statements need to evaluate a companys profitability liquidity and solvency. In this regard the companies which were chosen to be analyzed are NESTLÉ PAKISTAN and ENGRO FOODS LIMITED. Comparative analysis uses information gleaned from the two previous sources common-size analysis and ratio trend analysis.

So that a proper comparison can efficiently be made which helps the analyst to accept the overall conduct of a firm. Ratio analysis provides investors with tools to analyze a companys financial statements as it relates to risk reward profitability solvency and how well a company operates. Comparative Analysis of Financial Statements Between Two Companies With the objective to understand the business performance of the two entities we reviewed the 2007 financial statements of both company and tried to obtain some insight on the profitability and solvency of each entity.

Both the companies are of food industry and are dealing in food business for many years. Comparative and common size financial statements are two forms of statements used by companies to extract financial information. The calculation of dollar changes or percentage changes in the statement items or totals is horizontal analysis.

The paper Comparative Analysis of Financial Statement of Coca-Cola and Pepsi is a wonderful example of an assignment on finance and accounting. Financial Statement Analysis LO3. The comparative financial statement helps the analyst to compare Performance the performance of one firm with that of other similar firm in the industry and also compare the performance of the competitors in the line.

Total debt to equity ratio DAFODILCOM have. This analysis detects changes in a companys performance and highlights trends. This is an assignment of Comparative analysis of Financial Statement of two Companies.

The company in the right direction and how do investors in the fi rms shares evaluate the. Comparative analysis can involve either a comparison over a historical period of more than one year. The ability to compare various size companies is another advantage of using comparative statements for financial analysis.