Financial Analysis over financial statements

Hello guys,

I've been hard studding for several weeks on financial analysis over company's statements, but have one question:

Which financial statements to look consolidated or nononsolidated statements. I know that consolidated measured overall health of an entire group of companies. But to evaluated which company is better to choose, I must work with which statement and why?

Regards

If analyzing financial statements adds an edge to your trading then you need to know both consolidated and unconsolidated financial statements. You need to know how each company is performing in relation to its parent company (if your company is a subsidiary). However, if your company is the parent company then knowing the performance of subsidiaries might not be necessary. The only instance it would be necessary is if a catalyst occurred.

In addition to knowing consolidated and unconsolidated financial statements, you need to know how your company financial statements and stock prices are compared to the industry as a whole. One way of gauging this is through comparing your companies P/E (Price to Earnings ratio) with that of its industry.

Hope this helped.