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Company A and Company B have experienced different changes in their assets, liabilities, and owner’s equity over the past three years. For example, as shown in Figures 1 and 2 below, Company A’s total assets and total liabilities both increased significantly from 2017 to 2019. Meanwhile, Company B experienced significant decreases in both its total assets and total liabilities from 2018 to 2019.
These differences can be explained by the companies’ respective strategies for managing their finances. For example, it appears that Company A has been actively investing capital into its operations by gradually increasing its assets while accumulating more debt through additional loans or lines of credit. On the other hand, Company B appears to have pursued an opposite strategy of reducing its overall financial risk by decreasing its asset holdings while simultaneously repaying existing debt obligations.
Figure 1: Assets & Liabilities (2017-2019) – Company A
Figure 2: Assets & Liabilities (2017-2019) – Company B
Additionally, due to these different approaches taken by each company when addressing their financials positions over the past three years, there have also been corresponding changes in each company’s owner’s equity account balance during this time period as well. As depicted in Figures 3 and 4 below respectively for each company; Owner’s Equity for Company A decreased slightly from 2017 to 2018 before increasing substantially from 2018 to 2019; whereas Owner’s Equity for Company B actually decreased dramatically from 2017 all the way through 2019 due primarily to the previously mentioned reduction of existing loan balances outstanding at those times for said company’s accounts receivable balance sheet item line items .
Figure 3: Owner’s Equity (2017-2019) – Company A
Figure 4: Owner’s Equity (2017-2019) – Company B
When considering gross revenue figures between both companies during this same time frame; as displayed on Figures 5 & 6 respectively below – It is clear that despite having a decrease in Total Assets throughout this timeline captured – Gross Revenue earned by Business ‘B’ was much higher than what Business ‘A’ had reported at all points within this data set collection window analyzed here today on review .. Taken together with observed increases/decreases in owned property values possession held along side related declines/increases found within associated levels of liability owed effectively working towards ultimately providing beneficial assistance used towards offsetting potential future losses incurred or gained typically seen commonly across various business related origins currently being experienced presently…
Figure 5: Revenue & Earnings (2017-2019)– Company A
Figure 6: Revenue & Earnings(2017-2019)– Company B
Overall it seems clear that although both Companies ‘A’ and ‘B” saw changes within their Asset ,Liability ,and Owners Equity accounts during this given period discussed here today ; they did so via two separate yet distinctly different means based upon individual corporate strategies chosen which were reflective individually unique unto themselves reflecting those presented above . Further evidenced still is how differing earnings per unit sold amounts generated from sales made brought about quite contrasting results between these two businesses reviewed suggesting perhaps one may have been faring better than another depending upon which specific year we are speaking about amongst others specifically addressed herein now. These findings provide further insight into why certain shifts occurred when analyzing quarterly / annually based profit scheduling trends commonly seen amongst most organizations active on marketplace environments worldwide . The ability thusly gained gives us insight regarding whether current procedures employed demonstrate positive macroeconomic indicators being applied moving forwards or negative ones needing alternative solutions implemented instead . In conclusion ,it appears that while both companies performed differently over the last three years with respect to their financial performance – they either succeeded or failed based upon how they chose prioritize resources assigned towards long term growth objectives set forth prior.