Financial Statement Analysis is an analysis which highlights important relationships in the financial statements. It focuses on evaluation of past operations as revealed by the analysis of basic statements. Financial Statement analysis embraces the methods used in assessing and interpreting the results of past performance and current financial position as they related to particular factors of interest in investment decisions. It is an important means of assessing past performance and in forecasting and planning future performance.
Techniques of Financial Analysis:
Various techniques can be used in the analysis of financial data to emphasise the comparative and relative importance of data presented and to evaluate the position of the firm. These techniques of financial analysis are intended to show relationships and changes. Among the widely can be used of these techniques are the following:
1. Horizontal Analysis
2. Vertical Analysis
3. Trend Analysis
4. Ratio Analysis
Introduction to Finance:
FINANCE HAS MANY DICTIONARY MEANING SUCH AS MANAGEMENT OF MONEY, PROVIDE WITH MONEY, FIND CAPITAL ETC. FINANCE PLAYS AN IMPORTANT ROLE IN ANY ORGANIZATION. FINANCE HAS NOW DAYS BECOME A SPECIALIZED FUNCTION. IT REQUIRE
s overall knowledge of the environment in which it is needed.
Finance includes money, banking or credit of different types and classes. Finance is viewed differently by different people depending upon their interests. Management’s promoters, shareholders, lenders (creditors), customers and other have all participated in financing the organization or business enterprise.
MEANING & DEFINATION:
Finance is the process of conversion of accumulated funds to productive use. Finance helps to direct the flow of economic activity and facilitates its smooth operation. Finances are the agent that produces the result.
There are many definitions of... [continues]
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