When conducting financial analysis, it’s important that one pays attention to line items which experienced the most significant increases/decreases as these often provide insights into how operations are performing & what potential issues may exist. For instance – if net income shows large decrease then this could indicate underlying problems within business model such as inefficiencies or changes competitive landscape; thus requiring further investigation into why results deteriorated so rapidly.
Similarly – any sizable hikes should also warrant scrutiny particularly if company has not yet achieved profitability: although high revenue figures can appear promising on surface, further evaluation is needed ascertain whether growth is sustainable given current operating structure & whether profits will be generated once expenses (e.g. – taxes) are taken into account.
In conclusion – when analyzing financial reports, it’s essential that one understands implications of different changes seen over time order better understand their impact on company’s overall financial standing both currently & in future.