when analyzing financial statements it s important to compare multiple periods to determine any trends and compare the company s results to its peers in the same industry 
lastly financial statements are only as reliable as the information fed into the reports too often it s been documented that fraudulent financial activity or poor control oversight have led to misstated financial statements intended to mislead users even when analyzing audited financial statements there is a level of trust that users must place in the validity of the report and the figures being shown 