Condensed Financials


DEFINITION of 'Condensed Financials'

A summary form of a company's earnings statement, balance sheet and cash flow statement condensed to one page each. This is done for reprinting and simplified viewing purposes. This view of company financials is helpful for providing an overview of the business structure and income performance, but it lacks any line-item breakdowns or descriptive notes that can be found in a full filing.

BREAKING DOWN 'Condensed Financials'

For example, the condensed financial statement will only show one line for "total revenue", while the full earnings report will show revenue by operating division, products, services, interest and any other source of revenue.

When examining a condensed set of financials, you should be extra critical when looking at each line item. The lack of detail may make the analysis simpler, but that same lack of detail can mask large fundamental problems within the firm.

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    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
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    Cash flow is a means for most investors to examine the actual economics of a business they might invest in, especially from ... Read Full Answer >>
  3. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
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    It is a company's board of directors who actually declares a dividend. The declaration date is the first of four important ... Read Full Answer >>
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