Financia Statement Analysis

?1.INTRODUCTION: Financial disputation atomic number 18 the instrument circuit board of the business organisation enterprise, prepared for decision making. They constitute a field on managerial performance. Attesting to managerial success or ill & flashing warning signals familiar impending difficulties. To a subscriber with a knowledge of accounting, a set of pecuniary recital & tells a great deal about a business enterprise. NEEDLY FINANCIAL STATEMENT ANALYSIS: Financial statements are infallible to be analyzed & interpreted to set clear randomness about business operation & financial position. Financial statement analysis is a process of identifying the financial strengths and weaknesses of the firm by properly establishing human relationship blow the items of the B/S and P&C A/C. TOOLS OF FINANCIAL STATEMENTS ANALYSIS: Different types of techniques are used in financial statement analysis. These includes comparative statements, roll of changing in warking capital, common size percentages, fund analysis, thin analysis and ratio analysis. Ratio analysis is the power ful asshole in the financial statment analysis. RATIO: It is simple mathematical building of the relationship of one item to a nonher. It shows the relationship b/w statistical data.

RATIO ANALYSIS INTRODUCTION: Ratio analysis is a widely used tool of financial analysis. It is define as the systematic use of ratio to interpret the financial statements so that the strengths & weaknesses of a firm, as well as its historic performance & warrant financial condition, can be determined. Ratios concur the related information comparable. A single figure by itself has no meaning, but we expressed in terms of a related figure. It yields significant inferences. The ratio are relative figures reflecting the relationship between related variables. Their use, as tools of financial analysis, in Volvos their parity as single ratios like absolute figures are not of much use. Three types of comparisons are generally involved;... If you fate to get a full essay, order it on our website: Orderessay

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