Education - Course Name: Advanced Financial Statement Analysis

Excerpt from Financial Statement Analysis, 11th Edition

“The statements reveal how a company obtains its resources (financing), where and how those resources are deployed (investing), and how effectively those resources are deployed (operating profitability). Many individuals and organizations use financial statements to improve business decisions. Investors and creditors use them to assess company prospects for investing and lending decisions. Boards of directors, as investor representatives, use them to monitor managers’ decisions and actions. Employees and unions use financial statements in labor negotiations. Suppliers use financial statements in setting credit terms. Investment advisors and information intermediaries use financial statement sin making buy-sell recommendations and in credit rating. Investment bankers use financial statements in determining company value in an IPO, merger, or acquisition.