4.4. Making Comparisons to Other Companies

Many companies, particularly very large and publicly traded corporations, make their financial statements available on the Web. Even if you can't find the statements on a company's Web site, you can often find them on the sites maintained by brokerages or by content providers like Yahoo. Sometimes it can be illuminating to compare your company's finances with a Fortune 500 company, although the differences in scale can make such comparisons suspect — if not entirely bogus.

Suppose yours is a small company that manufactures a household product, perhaps a specialty wood polish. You manufacture it and even assist with local marketing but you do not act as a retailer. Instead, you sell it on a wholesale basis to the few small hardware and home goods stores that have not yet been driven out of business by Home Depot and Wal-Mart.