Financial statement analysis is a method of reviewing and analyzing a companys accounting reports financial statements in order to gauge its past present or projected future performance this process of reviewing the financial statements allows for better economic decision making globally publicly listed companies are required by law to file their financial statements with the relevant . By ben mcclurethe massive amount of numbers in a companys financial statements can be bewildering and intimidating to many investors on the other hand if you know how to analyze them the . Introduction to financial statement analysis 1 explain the purpose of financial statement analysis 2 understand the rela tionships between finan cial statement numbers and use ratios in analyz ing and describing a com panys performance 3 use common size fi nancial statements to per form comparison of financial statements across years and . Introduction to financial ratios and financial statement analysis there is almost always a reason why someone picks up an organizations financial statements and begins to analyze them lenders or creditors may be interested in determining whether they will be repaid money they have lent or may lend to the organization. A recording of lecture 6 of accounting for managerial decisions for the autumn 2016 session provides an introduction to financial statement analysis recorded on may 5 2016
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