Abstract

This technical note explains in detail the analysis of financial statements of a company. It provides insights into two widely used financial tools, ratio analysis and common size statements analysis. The objective of this note is to help the reader understand how these tools should be used to analyze the financial position of a firm. To demonstrate the process of financial analysis, Hindustan Lever Limited’s (HLL’s) balance sheet and income statements are analyzed in this note.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Financial Ratios Analysis.

Keywords

Technical note, financial statements, financial tools, ratio analysis, common size, statements analysis, financial position, financial analysis, Hindustan Lever Limited's, HLL, balance sheet, income statements