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Condensed Financials

Condensed Financials

What Are Condensed Financials?

Condensed financial statements are a summary form of a company's income statement, balance sheet, and cash flow statement, normally combined into a single document. These abbreviated statements are made to give a quick outline of the company's financial status with limited detail, and frequently for internal utilize as it were.

Things that would typically receive several details are in this manner condensed into just one line, for example, cost of goods sold (COGS) or retained earnings. Revelations and footnotes that would be found in full financial statements are disposed of.

Understanding Condensed Financials

Numerous businesses prepare condensed financials all through the year in anticipation of their quarterly or annual reports, and are frequently planned for motivations behind internal or outer auditing, as opposed to for investor or analyst use.

Consolidated financial statements will introduce similar overall financial image of the company as the full financial statements, yet things that would typically be several details in the full adaptation will be condensed down to one line for quickness. For instance, the condensed financial statement will just show one line for "all out revenue," while the full earnings report will show revenue by operating division, products, services, interest and some other source of revenue.

While inspecting a condensed set of financials, you ought to be extra critical while checking out at each detail. The lack of detail might simplify the analysis, however that equivalent lack of detail can veil large fundamental issues inside the firm. It could be smart to receive a full set of financial statements to survey too, as the full statements will contain exposures and details that might have been disposed of from the condensed form.

Different Considerations

The condensed financial statements must stick to Generally Accepted Accounting Principles (GAAP) and may on occasion be given to interested parties in lieu of full financial statements. The auditing team directing an audit of the company will for the most part see condensed financial statements alongside full financial statements for a full image of the company's financial standing. Any important divulgences or key snippets of information that a company firm decides to preclude from their condensed financials must thusly show up in the full renditions of the balance sheet, cash flow statement, and income statement gave alongside the condensed form.


  • Condensed financials must conform to generally accepted accounting principles and standards, and might be given as a band-aid until complete financial statements are made accessible.
  • This superficial perspective on company financials gives an outline of the business structure and income performance for internal use or the give to auditors.
  • Condensed financials are a summary of a firm's financial statements, all found together in a single document, and with limited detail.