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1 Essentials for Financial Statements Analysis . Journal of Financial Statement Analysis ,2020 Overview of financial statements analysis The analysis of financial data employs various techniques to emphasize the parative and relative importance of the data presented and to evaluate the position of the firm. These techniques include ratio analysis, mon size analysis, review of descriptive material, and parisons of results with other types of data. The information derived from these types of analyses should be blended to determine the overall financial position. No one type of analysis supports overall findings or serves all types of users. You have to select two listed panies existing in the same industry (. Unilever and Proctor and Gamble in the food and personal care products, etc) Get their financial statements for the most recent three years and Perform the aforementioned analysis. Financial Analysis techniques such as ratio analysis and mon size financial statements can provide valuable insight into a pany’s operations, risk characteristics, and valuation beyond what is readily apparent by examining raw data. When data is presented analytically, differences across time periods, interrelationships of financial statement accounts and parisons among panies, are more easily understood. An effective analysis enpasses both putations and interpretations. A well reasoned analysis differs from a mere plication of various pieces of information, putations, tables, and graphs by integrating the data collected into a cohesive whole. Analysis of the past performance, for example, should address not only what happened but also why it happened and whether it advanced pany’s strategy. Some of the key questions to address include: ? What aspects of performance are critical for this pany to successfully pete in the industry? ? How well did the pany’s performance meet