Infront Analytics is a powerful tool to compare companies, you must however be careful not to compare apples and oranges. In Infront Analytics terms, this means that you should avoid comparing two companies that have a different reporting model.
What is the reporting model?
The reporting model refers to the type of accounting used by the company for its financial reporting:
- Bank
- Financial
- Industrial
- Insurance
Where do I find it?
The reporting model is displayed in the Financial Statements view under Company Data.
How are ratio calculations impacted by the reporting model?
The financial ratios calculated for a company depend on its reporting model. For that reason, Infront Analytics automatically adjusts the view to the reporting model of the selected company.
Issues can appear if when a company is compared with another company that has a different reporting model. With predefined list of peers, such compatibility issues are unlikely to happen because all companies belonging to the list share the same reporting model.
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