I don't currently work for a publicly-traded company. I work for a small non-profit organization that does not prepare a financial statement that is required by the Unites States' generally accepted accounting principles (GAAP). Most smaller companies do not prepare financial statements that are comprehensive for the overall evaluation of their company's financial health. Financial Statement analysis is the process of analyzing a company's financial statements and financial documents in order to make an informed decision about the business (Stobierski, 2019). In my previous employment, I use to work forThermo Fisher Scientific, a publicly-traded company which prepares and reports annual financial statements (10-K) that following the guidelines of the U.S' GAAP.

As a publicly-traded company, Thermo Fisher follows robust financial reporting standards that are formulated by the US Securities and Exchange Commission (SEC). In the company's 10-K report, there are serious sections that describe the company business activities. Some of the most important sections in this company's 10-K report are the financial statements, which includes consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of cash flow, consolidated statement of redeemable non-controlling interest and equity, and notes to consolidated financial statements. In my judgment, Thermo Fisher's 10-K Reports do not need critique because they follow the US GAAP set by the SEC.

My suggestion to the company is that it should implement common-size financial statements, and horizontal financial statement for internal financial statement analysis. The horizontal and common-size analysis evaluates the company's financial health in terms of percentages. I believe that a percentage comparison give a true virtual representation of the company's financial health.

Reference,

Stobierski, T (2019). Financial statement analysis: The basics for non-accountants. https://online.hbs.edu/blog/post/financial-statement-analysis

 

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