Financial Statement Analysis

A rough outline of my financial analysis will utilize various financial ratios to gauge the current and future prospects of the company, stock performance will be analyzed, the company that is being analyzed will be compared with other companies in the industry to see if it is creating a better (or negative) value to its shareholders, and finally my overall opinion regarding the company will be provided as well.

As some of you may know, my financial analysis of Apple has gotten me on AAPL Death Watch list for predicting failure of Apple Iphone. I have been bombarded with emails on how I could not predict that Appel's Iphone would be a raging success, and even worse predict that it was going to fail. I admit that my assumption that Iphone would be a failure was wrong, and I have no problems accepting that fact. I didn't base my opinions of Iphone's failure on some whimsical notions, nor was the opinion based on some prejudicial notions against Apple. I had some strong reasons, and I have posted them in comment section of Apple Financial Analysis. You would also have to understand that the Iphone prices were cut steeply from $599 to $199 making them very much accessible to a large audience and further contributing to its large success.

P.S. I have also written an article on WACC (Weighted Average Cost of Capital). The article on WACC will help in the analysis of financial statements as well. Besides, the Weighted Average Cost of Capital article will be helpful for new finance students.