Financial analysis
FINANCIAL ANALYSIS
For the Year 2012, 2011, 2010
Introduction:
Knowing the financial conditions of Metrobank is very important. Such knowledge will help us allocate resources and identify areas requiring development and problems that need correction. As students of finance who can eventually be a financial manager should know how the business enterprise is doing financially. Is it growing or contracting? Will it be around for a long time? How profitable is the company? And what we should do to improve the profitability picture? These questions and others can be answered if the financial student understands corporate financial statements.
Financial decisions are typically based on the data generated from the accounting system. Financial management, shareholders, potential investors, and creditors are concerned with how well the company is doing. The three reports generated by the accounting system and included in the company annual report are the statement of financial position, income statement, and statement of cash flows. Although the form of these financial statements may vary among different businesses or other economic units, their basic purposes do not change.
Analyzing Financial Statements of Metrobank
In analyzing the financial statements of a Metrobank we set questions that we should answer:
1. How well is the Metrobank?
2. What are their strengths?
3. What are their weaknesses?
4. How does it fare in the industry?
5. Is Metrobank improving or deteriorating?
But what is Financial Analysis? Before starting it. Financial analysis refers to the examination of financial data of an entity to determine its profitability, growth, solvency, stability and effectiveness of its management. Relationship between financial data are interpreted and their significances are used as guide in the decision making process.
The analysis of financial statements means different things to different people, depending on their individual interests.
For the Year 2012, 2011, 2010
Introduction:
Knowing the financial conditions of Metrobank is very important. Such knowledge will help us allocate resources and identify areas requiring development and problems that need correction. As students of finance who can eventually be a financial manager should know how the business enterprise is doing financially. Is it growing or contracting? Will it be around for a long time? How profitable is the company? And what we should do to improve the profitability picture? These questions and others can be answered if the financial student understands corporate financial statements.
Financial decisions are typically based on the data generated from the accounting system. Financial management, shareholders, potential investors, and creditors are concerned with how well the company is doing. The three reports generated by the accounting system and included in the company annual report are the statement of financial position, income statement, and statement of cash flows. Although the form of these financial statements may vary among different businesses or other economic units, their basic purposes do not change.
Analyzing Financial Statements of Metrobank
In analyzing the financial statements of a Metrobank we set questions that we should answer:
1. How well is the Metrobank?
2. What are their strengths?
3. What are their weaknesses?
4. How does it fare in the industry?
5. Is Metrobank improving or deteriorating?
But what is Financial Analysis? Before starting it. Financial analysis refers to the examination of financial data of an entity to determine its profitability, growth, solvency, stability and effectiveness of its management. Relationship between financial data are interpreted and their significances are used as guide in the decision making process.
The analysis of financial statements means different things to different people, depending on their individual interests.