Report on Thomson Reuters TRI -1.Three year financial statement analysis including the Income Statement, Statement of Financial Position, Statement of Cash Flows, and Statement of Changes in Equity.2....

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Report on Thomson Reuters TRI -1.Three year financial statement analysis including the Income Statement, Statement of Financial Position, Statement of Cash Flows, and Statement of Changes in Equity.2. A summary of key accounting policies.3. Discussion of at least 10 footnote disclosures referencing significant IFRS policies.4. Three year key ratio analysis.5. Three year stock price history.
Answered Same DayMar 04, 2021

Answer To: Report on Thomson Reuters TRI -1.Three year financial statement analysis including the Income...

Preeta answered on Mar 05 2021
149 Votes
The following analysis has been done with reference to Thomson Reuters Corporation.
1. In the appendix F of the annual report of the company, the three year details
of some of the items have been given.
Analysis of income statement:
There has been an increase in the revenue over the period of three years which is a positive sign. There has been fluctuation in the operating profit, it increased in 2018 but again fell in 2019. There has been fluctuation in the net profit as well, it decreased in 2018 but again rose in 2019. There is huge difference between operating profit and net profit which is mainly due to earnings from discontinued operation. To keep stability, the company needs to increase its net profit along with increasing revenue. Too much fluctuation in the profit is also not good for the fincial helath of the company.
Analysis of Statement of Financial Position:
There has been a decrease in the total assets over the years, which is not a good sign since the company should try to maintain the asset level. There has also been decrease in the total long term financial liabilities which is a good sign since the company is reducing its liabilities. So, statement of fincial position represents a mixed picture where reducing liabilities are good for the fincial health of the company, reducing assets might affect that.
Analysis of Statement of Cash Flows:
The net cash flow from operating activities has decreased in the recent years compared to 2016. It is very important for any business house to generate positive cash flow from operation since a business is carried out to earn profit. The level was almost same in 2017 and 2018....
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