Financial statement analysis and common stock valuation

If you are an investor who values fundamental analysis, you are in the right place. If you need comprehensive financial ratios, read on. You already know that the analysis of financial statements allows you to buy cheap and sell high, now it’s time to put it into practice. Stock Analysis on Net is here for you.

Example company for today:

Sherwin-Williams Co. (NYSE:SHW)

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Sherwin-Williams Co. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Sherwin-Williams Co. balance sheet.

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by Sherwin-Williams Co..

Analysis of Revenues

Revenues as Reported

Analysis of Liquidity Ratios

Measures the adequacy of Sherwin-Williams Co. cash resources to meet its near-term cash obligations.

Long-term Trends

Analysis of Profitability Ratios

Measures the income of Sherwin-Williams Co. relative to its revenues and invested capital.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

An approach to decomposing Sherwin-Williams Co. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Sherwin-Williams Co. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Sherwin-Williams Co. cash resources to meet its near-term cash obligations.

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to Sherwin-Williams Co. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Sherwin-Williams Co. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Sherwin-Williams Co. earnings.