Patterns extracted from stock market analysis by Lidoma Analysis Software Team
Comparative report (comparative analysis)
These types of reports help managers and analysts compare the financial position and performance of a company with its competitors or with its past performance. Comparative reports usually include comparing financial results with similar data in different periods or comparing them with industry averages. These comparisons can help identify the strengths and weaknesses of the company and lead to more effective strategic planning. Comparative analysis is usually performed on the income statement and balance sheet.
Cost management report
This report focuses specifically on cost management and analysis and is useful for better controlling costs and increasing company productivity. Cost management reports can include the following:
Fixed and variable costs: Identifying costs that are fixed (such as building rent) and costs that are dependent on production or sales (such as raw materials).
Overhead costs: Costs that are not directly related to production, but are necessary for business operations (such as administrative costs).
Direct and indirect costs: Costs that are directly related to the production of goods or services, and costs that indirectly affect the company's activities. These reports are usually prepared internally at the company level to improve business processes and reduce costs.
Ratio Analysis Report (Financial Ratios)
These types of reports help analysts and managers examine the financial performance of a company using various ratios. Financial ratios analyze various aspects of a company's financial position and help decision makers gain a better understanding of the organization's financial health. Some of the most important financial ratios are:
Current Ratio: Examines the company's ability to pay short-term debts.
Debt to Equity Ratio: Measures the extent to which debt is used in relation to shareholder investment.
Profitability Ratios: Measures the company's ability to generate profits, such as the ratio of net income to sales.
Asset Turnover Ratio: Measures the efficiency with which assets are used to generate income.
These reports are usually used for more in-depth analysis and comparisons with competitors or industry standards.
Break-Even Analysis Report
This type of report helps determine the point at which a company covers its revenues by the amount of its fixed and variable costs, turning from a loss to a profit. Break-even analysis helps managers identify the minimum level of sales required to cover costs. This analysis is often very useful for companies that are offering new products or services or are planning to change their business model.