What are consolidated financial statements?
What are consolidated financial statements?
Consolidated financial statements will occur in the event that there is a subsidiary company. Each company has a working system similar to that of a large branch, namely management and finance. To see an overview of the entire business Consolidated financial statements will be used at this point. If it's easy to understand, it's the financial statements of all subsidiaries together. The financial statements seen in the list are transactions with third parties. Because the various statements of the main branch and the sub-branch will be offset between transactions. And when you want to calculate the financial ratio It will be formulated as follows.
ROE used = net profit of main store/average shareholder equity of main store
Net Profit Margin = Profit before non-powerful deductions/total revenue
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