What KPIs do you look into when analysing the financial statements, income statement, .. ?

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Accepted Answer

Key Performance Indicators (KPIs) for analyzing financial statements include profitability ratios, liquidity ratios, and efficiency ratios.

Profitability ratios such as return on assets (ROA) and return on equity (ROE) measure the company's ability to generate profit from its assets and equity.
Liquidity ratios like current ratio and quick ratio assess the company's ability to meet short-term obligations with its current assets.
Efficiency ratios like asset turnover ratio and inventory turnover ratio evaluate how effectively the company is utilizing its assets and managing inventory.
Debt ratios like debt to equity ratio and interest coverage ratio indicate the company's level of financial leverage and ability to cover interest payments.
Growth indicators such as revenue growth rate and earnings per share (EPS) growth rate show how the company is expanding and increasing profitability over time.

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