Financial Analysis

INTRODUCTION OBJECTIVE: To understand the information withdrawed in pecuniary statements with a view to know the strength or weaknesses of the firm and to serve forecast about the future prospects of the firm and thereby modify the financial analyst to take different decisions regarding the ope rations of the firm. proportionality ANALYSIS: Fundamental Analysis has a very freehanded scope. One aspect looks at the general (qualitative) factors of a company. The former(a) side considers tangible and measurable factors (quantitative). This means crunching and analyzing takingss from the financial statements. If used in conjunction with other methods, quantitative psychoanalysis can produce excellent results. proportion analysis isnt simply comparing different numbers from the balance sheet, income statement, and cash go down statement. Its comparing the number against previous years, other companies, the industry, or up to now the economy in general. Ratios look at the births between psyche values and relate them to how a company has performed in the past, and power perform in the future. MEANING OF RATIO: A ratio is one figure pull up in terms of some other figure.

It is a mathematical yardstick that measures the relationship two figures, which be related to each other and mutually interdependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an expression relating one number to another. It is simply the quotient of two numbers. It can be expressed as a fraction or as a quantitative or as a pure ratio or in absolute figures as so many quantify. As accounting ratio is an expression relating two figures or accounts or two sets of account heads or group contain in the financial statements. MEANING OF RATIO ANALYSIS: Ratio analysis is the method or process by which the relationship of items or group of items in the financial statement atomic number 18 computed, determined and presented. Ratio... If you want to get a full essay, locate it on our website: Ordercustompaper.com

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