You need all 3. This is like asking whether having an engine is more important to driving a car than having the wheels and axles. You need them all. CF could be “the best” as others have stated. However, without knowing what the drivers are of revenues and costs, it’s probably going to be tough to project CF accurately IMO.
^so true, had to post it twice
Better collect at least 2 subsequent financial periods complete FS statements which includes all 4 (yes the statement of changes in Equity as OP says “SE” is also separated Financial report and is not comprehensive income report which is an extension of P/L report).
Further, if Company what you analyze is a holding structure, collect both, consolidated and separated FS. Thus you may pick up inter company transactions.
Two years completed FS give you 4 years review and basis for horizontal and structural analysis for such you need all mentioned parts of the financial statements. You need them all for comprehensive analysis and usually is not problem because are always disclosed in complete.
Don’t forget to read the Notes and Management report, you will be surprised how interesting things you may find there.
P&L is just income statement, right? Can those two terms be used interchangeably?
Heiso yes
doing pro forma, i get all loopy when working on pension liabilities and hedging activities… hedging activities are small portion at least for us because i am working on a grocer but pension stuff makes me jump through the hoops and run backwards…any advice?