APPLICATION OF THE SUSTAINABLE EARNINGS BASE WORKSHEET: BAKER HUGHES INC.
This case example of using the SEB worksheet is based on the 1997 annual report of Baker Hughes Inc. and its results for 1995 to 1997. The income statement, statement of cash flows, management’s discussion and analysis of results of operations (MD&A), and selected notes are in Exhibits 2.27 through 2.34. Further, to reinforce the objective of efficiency in financial analysis, we adhere to the search sequence outlined in Exhibit 2.3.
Most of the content of the Baker Hughes financial statements as well as relevant footnote and other textual information is provided. This is designed to make the exercise as realistic as possible.
Frequently Asked Questions
- WHAT ARE FINANCIAL STATEMENTS? A CASE STUDY
- POINTS TO REMEMBER ABOUT FINANCIAL STATEMENTS
- FINANCIAL STATEMENTS: WHO USES THEM AND WHY
- FINANCIAL STATEMENT FORMAT
- HOW TO ANALYZE FINANCIAL STATEMENTS
- USING FINANCIAL RATIOS
- COMBINING FINANCIAL RATIOS
- THE Z SCORE
- INTRODUCTION TO ANALYZING BUSINESS EARNINGS
- THE NATURE OF NONRECURRING ITEMS
- THE PROCESS OF IDENTIFYING NONRECURRING ITEMS
- NONRECURRING ITEMS IN THE INCOME STATEMENT
- NONRECURRING ITEMS IN THE STATEMENT OF CASH FLOWS
- NONRECURRING ITEMS IN THE INVENTORY DISCLOSURES OF LIFO FIRMS
- NONRECURRING ITEMS IN THE INCOME TAX NOTE