Chapter 4, analyzing financial statements. After studying this chapter, you should understand: How to standardize fi nancial statements for comparison purposes; how to compute and, more importantly, interpret some common ratios; the determinants of a fi rm’s profi tability; some of the problems and pitfalls in fi nancial statement analysis. | Lecture Fundamentals of corporate finance (3/e): Chapter 4 - Robert Parrino, David S. Kidwell, Thomas Bates