Essentials of Investments: Chapter 14 - Financial Statement Analysis includes Financial Statement Analysis, Financial Statements, Profitability Measures, Financial Leverage and ROE, Decomposition of ROE, Choosing a Benchmark. | CHAPTER 14 Financial Statement Analysis INVESTMENTS | BODIE, KANE, MARCUS 1 McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. 19-2 Financial Statement Analysis • Financial statement analysis can be used to discover mispriced securities. • Financial accounting data are widely available, but – Accounting earnings and economic earnings are not always the same thing! INVESTMENTS | BODIE, KANE, MARCUS 2 19-3 Financial Statements • Income Statement: – Profitability over time • Balance Sheet: – Financial condition at a point in time • Statement of Cash Flows: – Tracks the cash implications of transactions. INVESTMENTS | BODIE, KANE, MARCUS 3 19-4 Table Consolidated Statement of Income for Hewlett-Packard, 2009 INVESTMENTS | BODIE, KANE, MARCUS 4 19-5 Table Consolidated Balance Sheet for Hewlett-Packard, 2009 INVESTMENTS | BODIE, KANE, .
