I was going through AnantRaj Annual Report & can see
“Consolidated Financial statements” as well as “Standalone Financial statements.”
Whats the difference & which one of these should we investigate…
the valuation is done on consolidated numbers. one should investigate both numbers (standalone and consolidated) as it will give u in-depth knowledge abt the co.
Consolidated accounts for the subsidiaries as well. Lets say your company ( the parent company) has 60% stake in its subsidiary, then for calculating consolidated net income, you will add the standalone numbers and the subsidiary numbers and subtract 40% of net income of the subsidiary as the minority interest ( look up its meaning on google).
You may find this useful - A company should be known by the company it keeps, I had written it as a guest post a few months ago.
Warm regards,
2 Likes
Look at both. But look more at consolidated numbers. Most websites calcukate EPS and ratios on standalone nos. This is usually misleading.