Financial Statement Analysis Sources for your Essay

Ratio and Financial Statement Analysis


Standard adjustments include separating transitory from recurring items and distinguishing financing from operating effects. More-complex adjustments include capitalization of operating leases, capitalization of Research and Development (R&D) expenses, and consolidation of subsidiaries accounted for under the "equity method" (De Mello-e-Souza and Awasthi, 2009)

Financial Statement Analysis Westpac (Wbc) Westpac Banking


Westpac was able to generate $468 millions in cash from operations. (Financial Times,2011)

Financial Statement Analysis Westpac (Wbc) Westpac Banking


Westpac was able to generate $468 millions in cash from operations. (Financial Times,2011)

Financial Statement Analysis Westpac (Wbc) Westpac Banking


However, the company recovered in 2010 with increase of 61% in ROE between 2009 and 2010. (Westpac Annual Report 2010)

Financial Statement Analysis Westpac (Wbc) Westpac Banking


However, the company recovered in 2010 with increase of 61% in ROE between 2009 and 2010. (Westpac Annual Report 2010)

Financial Statement Analysis Ambiguity and


This type of attitude and behavior in the world of financial analysis only makes misrepresentation and incorrect reporting more possible and lucrative, and therefore more prevalent. This has been especially true in China and other Asian countries during the past several decades of economic expansion in that region of the world (Bai et al

Financial Statement Analysis Ambiguity and


"Creative accounting" techniques have definitely exacerbated the problem and made the recent economic downturn both more extreme and more scandalous than the correction might otherwise have been. Even without creating scandal or a massive financial collapse, however, the general practice of producing and analyzing financial statements is kept purposefully arcane by those in the industry, making it difficult for average investors and government agencies to ascertain a company or industry's true financial strength (Gauthier 2004)

HP: Financial Statement Analysis There Are Many


The company does not therefore face any risk in terms of debt-load. The debt-to-equity ratio on the other hand is used to measure the degree to which a business makes use of both debt and equity to fund their assets (Arora, 2009)

HP: Financial Statement Analysis There Are Many


It should however be noted that during the computation of the current ratio, inventory is included as part of current assets. The problem with the inclusion of inventory in this case is that some components of inventory may prove hard to liquidate at short notice (Smith, 2010)

HP: Financial Statement Analysis There Are Many


80 Return on equity -- ROE in the words of Smith (2010) helps in the determination of how profitable investments made by equity capital providers are. Most particularly it "shows what percentage was earned on the owner's investment" (Temte, 2005, p

Consolidation of Financial Statement Analysis in the


For instance, Accounting Trends and Techniques (American Institute of Certified Public Accountants 1998) noted that 97.2% of the firms surveyed include "Consolidation Policy" in their footnotes (Blacconiere & Hopkins, 2002)

Consolidation of Financial Statement Analysis in the


123, Accounting for Stock-Based Compensation. According to their press release, the purpose of the proposed amendment was twofold: 1) To enable companies that choose to adopt the preferable fair value-based method to report the full effect of employee stock options in their financial statements immediately upon adoption; and 2) To make available to investors better and more frequent disclosure about the cost of employee stock options (FASB Issues Exposure Draft on Accounting for Stock Options, Amends Transition and Disclosure Provisions 2002)

Consolidation of Financial Statement Analysis in the


According to Louis Lowenstein (2002), financial accounting has but one straightforward goal: "To give investors and other outsiders an honest report on a company's performance and management's stewardship. Accurate accounting ("transparency") is something that Americans preach to other nations as an essential precondition for successful capitalism" (Lowenstein, 2002, p

Consolidation of Financial Statement Analysis in the


S. government reported that the agencies and departments of the federal government were unable to properly account for the money each was entrusted with and, therefore, he was unable to produce a legitimate consolidated financial statement (O'Meara 2002)

Consolidation of Financial Statement Analysis in the


Complicating matters is the complex methods by which the value of these options have been historically calculated. Faced with this changing landscape, many companies are being forced into difficult decisions around broad-based equity compensation (Pike & Neale, 1996)

Consolidation of Financial Statement Analysis in the


The second method would be to include options granted in previous years, as well as current grants, creating an even greater hit to earnings. The third method requires companies to include old awards and restate their earnings from previous years as if they had been expensing options in the past (Robinson, 2002)

Consolidation of Financial Statement Analysis in the


For the most part, he says, the other user groups can demand and obtain additional information or request clarification of data included in the annual report. For instance, if a company wants to obtain additional financing, it would probably be willing to satisfy a potential creditor's demand for additional information (Sannella, 1991)

Consolidation of Financial Statement Analysis in the


T. Barnum's advice that "There's a sucker born every minute": "Derivatives are nothing new, but I doubt whether, 400 years ago, merchants calculated an option price after consideration of its delta, gamma, theta, or rho, but the underlying principles are timeless" (Warner 2002, p

Financial Statement Analysis Project


While coffee-drinkers typically see coffee as a staple item, Starbucks coffee proved to be discretionary. In a recessionary environment, consumers began to trade down either to other fast food companies that had lower price points, or to the grocery store business (Adamy & Wingfield, 2009)

Financial Statement Analysis Project


The company has one of the largest networks of restaurants, today numbering of 17,000 worldwide and over 50,000 points of distribution (2010 Starbucks Annual Report). The company is also involved in consumer products, including premixed coffee drinks, and has just entered into the juice business with the acquisition of Evolution Fresh, theoretically wanting to apply its coffeeshop business model to that segment (Cannold, 2011)