Stockaivisor: Generative AI-powered Financial Analysis

 

Financial Statement Analysis

Choosing the right tool at the right time is never easy. Too often, we focus heavily on technical analysis, which is a short-term approach that can be limiting. But there’s more to smart investing than just price charts and patterns. However, gauging the financial health of a company is another essential tool for an investor before investing her money. After all, a well-rounded strategy goes beyond trends, it dives into the fundamentals that truly drive long-term success!

In this blog, I will introduce how you can benefit from financial statement analysis using Stockaivisor. Financial statement analysis includes:

1. Income Statement
2. Balance Sheet
3. Trend Analysis with Income Statement
4. Trend Analysis with Balance Sheet
5. Summarization
6. Topic Detection
7. Sentiment
8. Financial Ratio Analysis

Income Statement and Balance Sheet

These two financial statements are the main building blocks for a company. Simply by analyzing these two, we can assess a company's profitability, liquidity, and efficiency, among other factors. An income statement provides of a company’s summary of their revenues, expenses, and profits over a specific period. Stockaivisor gives you the income statement for the last 10 years of your chosen company like this: 

Due to the spacing, I have it cut the dates and items off, but you can see the entire table here at Stockaivisor. As you can see at the top of the image, you can select the time period as either annual or quarterly.

A balance sheet, on the other hand, provides a snapshot of a company's financial condition at a specific point in time. It details the company's assets, liabilities, and shareholders' equity, offering insights into its financial strength, liquidity, and capital structure. Here is a snapshot of Apple’s financial statement on a quarterly basis.

If interpreting financial data feels overwhelming, no worries! Stockaivisor has tools like Trend Analysis with Income Statement and Trend Analysis with Balance Sheet.

And if you're unsure how to incorporate financial statements, which are the cornerstone of fundamental analysis, head over to Stockaivisor’s Academy. (https://stockaivisor.com/academy). With just a simple prompt, you can generate a personalized course on financial statement analysis, tailored to your knowledge level and preferred duration. Investing smarter has never been easier!

Let’s go back to our discussion now. Trend analysis with an income statement involves examining the income statements of a company over multiple periods to identify patterns, changes, and trends in the company's financial performance.

Trend analysis with an income statement involves examining the income statements of a company over multiple periods to identify patterns, changes, and trends in the company's financial performance. Here, you see what Apple’s trend analysis with income statement looks like: 

Trend analysis of the balance sheet involves evaluating the financial statements of a company over multiple periods to identify patterns, trends, and changes in the company’s financial condition and performance over time.

To extract the most valuable insights from financial tables, ratio analysis is a powerful tool, and it is readily available on the Stockaivisor platform. With nearly 20 ratios, you will gain a better understanding of a company's financial well-being. Here, you can see a snapshot from Apple:

This table provides key insights into Apple's profitability, efficiency, and liquidity. By clicking the blue icon next to an item name, you can view a graph displaying its quarterly trend over the past five years.

That's not all for financial statement analysis! How about summarization, topic detection, and sentiment analysis of financial announcements like the 10-K?

Summarizing a financial announcement involves distilling key information and insights from a company's public disclosure about its financial performance, strategic decisions, or other significant news affecting its financial outlook. Click on the ”Run” button and get the summarization of the 10-K announcement of the company like this:

Topic detection in financial announcements involves identifying the key subjects or themes present in the text of financial disclosures. You can also see which topics are mentioned in separate parts (items 7, 7-A, and 8) of the 10-K announcement on Stockaivisor. Let me briefly introduce what they are:

• Item 7 (Management's Discussion & Analysis - MD&A): Management's perspective on financial performance
• Item 7A (Quantitative & Qualitative Disclosures About Market Risk): Market risks like interest rate fluctuations
• Item 8 (Financial Statements & Supplementary Data): Audited financial statements, footnotes, and additional financial disclosures.

 

It turns out. that in items 7-A, 7, and 8, debt risk and regulation change are highlighted, respectively. Here are the snapshots from Stockaivisor:

Last but not least, Stockaivisor offers sentiment analysis based on 10-K under financial statement analysis. Later in the series, you will see sentiment analysis on recent news. Let’s see what the sentiment analysis looks like: 

Understanding financial statements doesn’t have to be complicated. With Stockaivisor, you get clear insights, trend analysis, and key financial ratios—all in one place. Try it out today, and take the guesswork out of investing!

FAQs

1. Why is financial statement analysis important for investors?

Financial statement analysis helps investors go beyond stock price trends and understand a company's real financial health. By analyzing income statements, balance sheets, and key financial ratios, you can assess profitability, liquidity, and overall stability before making investment decisions. Stockaivisor simplifies this process by providing easy-to-read data and insights.

2. How does Stockaivisor make financial analysis easier?

Stockaivisor does the heavy lifting for you! Instead of manually going through financial reports, you get pre-analyzed insights like trend analysis, ratio analysis, sentiment detection, and even financial statement summarization—all in one place. Plus, with interactive graphs and AI-powered breakdowns, you can quickly understand a company’s performance without being a financial expert.

3. What if I’m new to financial statement analysis?

No worries! Stockaivisor’s Academy can generate a personalized course just for you. Whether you're a beginner or looking to sharpen your skills, you can learn at your own pace with content tailored to your knowledge level and preferred duration. It’s the easiest way to get started with fundamental analysis!