{"id":134,"date":"2018-04-16T20:37:18","date_gmt":"2018-04-16T20:37:18","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/?post_type=chapter&#038;p=134"},"modified":"2024-04-26T22:18:12","modified_gmt":"2024-04-26T22:18:12","slug":"introduction-to-analyzing-data-from-financial-statements","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/chapter\/introduction-to-analyzing-data-from-financial-statements\/","title":{"raw":"Introduction to Analyzing Data from Financial Statements","rendered":"Introduction to Analyzing Data from Financial Statements"},"content":{"raw":"<h2>What you will learn to do: Analyze data from Financial Statements<\/h2>\r\n[caption id=\"attachment_2910\" align=\"alignright\" width=\"300\"]<img class=\"wp-image-2910 size-medium\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2985\/2018\/04\/14140512\/calculator-1680905_19201-300x200.jpg\" alt=\"A calculator and pen lying on top of a bar graph\" width=\"300\" height=\"200\" \/> Measuring a company's financial performance is one of the primary reasons for the creation of financial statements.[\/caption]\r\n\r\nThe key financial statements of a company provide a snapshot of the financial position of the organization and this is extremely useful to the internal and external stakeholders of the business. However, the real power of financial statements lies in our ability to analyze the information on these financial statements to evaluate the past and present financial position of the company.\r\n\r\nFinancial statement analysis allows us to determine the health of the business in terms of how well it manages its inventories, expenses, revenues and debt. Analyzing these financial statements also gives us the ability to compare the financial health of the business against other companies in the same industry. In this section you will learn how companies report items such as inventories, assets, stockholder equity, revenues and expenses on their financial statements.","rendered":"<h2>What you will learn to do: Analyze data from Financial Statements<\/h2>\n<div id=\"attachment_2910\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2910\" class=\"wp-image-2910 size-medium\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2985\/2018\/04\/14140512\/calculator-1680905_19201-300x200.jpg\" alt=\"A calculator and pen lying on top of a bar graph\" width=\"300\" height=\"200\" \/><\/p>\n<p id=\"caption-attachment-2910\" class=\"wp-caption-text\">Measuring a company&#8217;s financial performance is one of the primary reasons for the creation of financial statements.<\/p>\n<\/div>\n<p>The key financial statements of a company provide a snapshot of the financial position of the organization and this is extremely useful to the internal and external stakeholders of the business. However, the real power of financial statements lies in our ability to analyze the information on these financial statements to evaluate the past and present financial position of the company.<\/p>\n<p>Financial statement analysis allows us to determine the health of the business in terms of how well it manages its inventories, expenses, revenues and debt. Analyzing these financial statements also gives us the ability to compare the financial health of the business against other companies in the same industry. In this section you will learn how companies report items such as inventories, assets, stockholder equity, revenues and expenses on their financial statements.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-134\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Introduction to Analyzing Data from Financial Statements. <strong>Authored by<\/strong>: Freedom Learning Group. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Untitled. <strong>Authored by<\/strong>: stevepb. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/en\/calculator-calculation-insurance-1680905\/\">https:\/\/pixabay.com\/en\/calculator-calculation-insurance-1680905\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":62559,"menu_order":14,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Analyzing Data from Financial Statements\",\"author\":\"Freedom Learning Group\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Untitled\",\"author\":\"stevepb\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/en\/calculator-calculation-insurance-1680905\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"573af435-bfc8-4b58-ae0f-19340bd9cbb9","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-134","chapter","type-chapter","status-publish","hentry"],"part":103,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/users\/62559"}],"version-history":[{"count":8,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/134\/revisions"}],"predecessor-version":[{"id":3265,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/134\/revisions\/3265"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/parts\/103"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/134\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/media?parent=134"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapter-type?post=134"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/contributor?post=134"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/license?post=134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}