I am conducting a business analysis on JP Morgan Chase & Co. This assignment entails researching the company's business environment. Review the company's income, balance sheet, and cash flow to determine the financial health of the company. Be sure to compare your company to at least two other companies in the industry.
I do not know how to begin this part of the analysis. Also, I am to answer questions: What have you learned about the company by reviewing each statement?
Is there information in any of the statements that concerns you?
Let us first discuss what the statements you have noted above illustrate to the users of these financial statements.
An income statement shows how much profit or loss a company has made over a period of time. It is alternately named a Profit and Loss Statement.
A balance sheet - is a statement showing what the company owns (assets) and what it owes (liabilities) at a given point in time. It is like a snapshot.
A cash flow statement shows how cash is acquired by a company (perhaps through sales of products or services, sale of assets) and how a company is spending its cash - perhaps on wages and utilities. This statement shows only cash made and paid.
The following link provides a comprehensive look at financial statements and their analysis.
Let us look at some key areas of each statement that can be analyzed.
Now because this statement focuses ...
Business environment analysis is examined. Information in any of the statements that concerns you are determined.