As always, we'll be sharing thoughts regarding the call after we hear it tonight. We're getting back to basics, and we'll continue this week by reviewing more concepts and definitions as we dig deep into the report cards of the American publicly traded company and begin to analyze the data within. This week we'll focus on a few accounting terms as they relate to financial disclosure. In order to arrive at a meaningful conclusion, it's important to contrast like periods of time when investigating financial statements. This means comparing the fourth quarter of 1999 with the fourth quarter of 1998, or the first six months of 2000 with the first six months of 1999.
Direction is the key here, rather than position.
It's also very useful to look at comparable periods going back several years to gain perspective. Industry Benchmarks Several industries will have unique gauges that aid in diagnosing a company's health compared to the same period last year. A typical example is same-store sales in the retail sector. This is the percentage increase in sales achieved by stores that have been open for at least one year. Become familiar with the industry benchmarks for the companies you wish to evaluate.