Revenue Model & Recognition: Determining Hidden Value I
First, from a high level, the income statement displays the ability of a company to generate value over a specific period of time. The balance sheet gives a snapshot picture of a company’s financial picture at the end of an accounting period. The statement of cash flows reflects the company’s ability to generate/raise cash from operating, investing and financial activities.
When you examine performance through KPIs/formulas, most of the data probably comes from an income statement. It is also the one…