CI Market Dashboard

We have put together a collection of market indicators and track them to help you gauge the direction of the market.

CI Analysis Worksheets

Interactive analysis templates covering DuPont analysis (return on equity), valuing stocks the Warren Buffett way, and more to come.

CI Blog Feed

Bullish Sentiment Jumps to 3-Week High
posted less than a minute ago by Wayne Thorp

Big Changes at Apple
posted 10 hours ago by Joe Lan

Facebook Beats Estimates as Advertising Revenue Grows
posted 10 hours ago by Wayne Thorp

Apple Beats Estimates; Announces 7-for-1 Stock Split
posted 10 hours ago by Wayne Thorp for Value Investors
posted 1 day ago by Jaclyn McClellan

Computerized Investing > Third Quarter 2012

Common Size Financial Statements

PRINT | | | | COMMENTS (5) | A A   Reset

by Wayne A. Thorp, CFA

Financial statement analysis applies analytical tools and techniques to financial statements to determine the operating and financial success of a firm. The emphasis of the analysis depends on one’s viewpoint. A credit analyst extending a short-term, unsecured loan to a company might emphasize the firm’s cash flow and liquidity. An equity investor, on the other hand, may look closely at growth in sales, earnings and dividends. He would be interested in the variables that might have a significant impact on a firm’s financial structure, sales, earnings production and dividend policy.

In this installment of Spreadsheet Corner, we present a template that uses data from the balance sheet, income statement and cash flow statement to produce financial comparisons of interest to investors. We have attempted to make the line items industry-neutral so they are adaptable across companies in differing lines of business.

...To continue reading this article you must be a Computerized Investing Subscriber.

Gain exclusive access to this article and all of the benefits and investment education a Computerized Investing subscription offers.

SUBSCRIBE TODAY for just $24.
Log in
Already a CI subscriber? Login to read the rest of this article.

A subscription to Computerized Investing includes a monthly email and access to the CI Website, all of which aim to benefit your investing skills with respect to computers and the Internet.