Discussion Post: Financial Statement Analysis
• What does profitablilty analysis mean to you? Why do companies analyze profits? What is Analysis? Do you believe that it is necessary to analyze profits? Answer these questions and provide an article link that supports your answers. Discuss and expand the conversation around each others' articles. Cite outside material properly.
• How can two companies with identical P & L statements (identical profitablity) at year end provide different annual returns to each of their investors? Which company is the riskier investment? Discuss some different scenarios that result in different levels of risk in each of the cases. Cite outside articles/material.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.