What are the tools one can use to analyze a company's performance?

What are the tools one can use to analyze a company's performance?

by Mustavi Mihad -
Number of replies: 0


pro forma statement: Investors who doubt a firm's ability to access capital markets often review the company's pro forma statements. These are accounting reports with projected numbers. Capital markets are also called financial exchanges and enable businesses to raise funds.


Budgets: Budgeting is an effective tactic for a company eager to curb operating costs and rein in excessive spending. By delving into corporate budgets, department heads can analyze the financial performance of each business unit and single out processes generating mediocre numbers.

Balance sheets: In the modern economy, strong balance sheets are generally rife among businesses that consistently generate profits and run tight ships. By analyzing a balance sheet, investors can calculate a company's assets and compare them to its liabilities.


Income Statement: Corporate leadership looks at negative income statements as a learning opportunity. They use bad performance numbers as a benchmark to correct inefficient mechanisms. Income statement components include revenues and expenses.