Hi guys!
I’m trying to understand from an annual report of a company how they are different and which one gives more information of a company?
Such as regarding a segment of a company for example LOTTE having different business segments and to see the performance of them, which is better?
I searched a lot on YouTube and Google as well but the information feels scattered for a beginner like me and I’m really confused! I need to make some bar charts soon and provide a proper explanation.
PS: I don’t have any background in business I’m a fine art student but cuz of one of the member who was supposed to fulfill this task is sick now, I have to do it.
I’ll appreciate a lot if you could help! Please either comment here or dm I’ll send you the picture of where I’m stuck at.
In: 2
Financial statement analysis is the term for what you’re doing and it is generally introduced as a semester long college level course in accounting/business/economics. (* not an introductory course)
There is no such thing as “better” when looking at the different numbers. That is like analyzing an animal and saying the leg is “better” than the stomach. Each component gives an indication of different aspects of the company and each measure is important to get a full picture of how a company is doing.
Net Sales = how much customers bought from the company
EBIT% = Earnings before Interest and Taxes as a % of Sales
Operating profit = Net Sales – Operating Costs (what is operating costs differs by company). If the number is positive, then the company has an operating profit; if negative then the company has an operating loss.
Look up websites like [investopedia.com](https://investopedia.com) But this is not exactly an easy task without the background.
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