inconsistent Income statement
I am trying to do some Vertical and Horizontal analysis on the financial statements of a company I want to further investigate . Since I didn't have a template layout in excel of the company's financial statements I am creating one from scratch. The problem I am running to is it seem that the company doesn't keep a consistent format(2014 vs prior years) in term of how and what account titles are listed quarter over quarter. Below I have linked some examples of the company's income statement (quarterly) as to what I am talking about . As you can see the account titles on the income statement are not consistent across the links listed. This posses a problem because in order to have an accurate analysis I need account names to be consistent across quarters. What can you suggest? Thanks in advance
http://www.sec.gov/cgi-bin/viewer?action=view&cik=1402281&accession_num…
http://www.sec.gov/cgi-bin/viewer?action=view&cik=1402281&accession_num…
http://www.sec.gov/cgi-bin/viewer?action=view&cik=1402281&accession_num…
Either just add line items for the new ones and have them listed as zero in years where not applicable, or (much neater and efficient) categorise the line items yourself....
I haven't looked at the statements, but for a (very random, unrealistic, hypothetical) example if one year a company only has salespeople and lists their salaries and the next hires some IT guys and has a line item for sales salaries and another for IT salaries, in your model you can just have one line item - salaries - and group them accordingly.
Thank you for the suggestion. I wasn't sure if that process would throw off the analysis.
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