Compare two company quality reports

The same ratio should be performed both statements. This can be brief, possibly just one paragraph. Describe in detail item one all advantages and disadvantages and any results found from research done.

how to compare balance sheet of two companies

In that case, the future results may not be as valid, because the prior results were based on the dependence of the key person. List the advantages and disadvantages side by side to clearly show the comparison, keeping the format as similar as possible depending on the structure of the items and how they were measured.

If any tables or statistics are being used, keep them in the same format for the sake of an unbiased viewpoint.

The net profit ratio is arrived at by taking the net, pre-tax profit shown near the bottom of the profit and loss and dividing it by the nets sales.

comparison of two companies

Do the same for item two. You could be comparing two different products to see which one is the best one to mass produce next.

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How to Compare Financial Statements Between Businesses