Financial Statements Analysis

Financial statement analysis

The main idea:

1. The definition of Financial statement analysis.
2. The consists of financial statement analysis
1. The Types of financial statement analysis.
   1. The purpose of financial statement analysis.
   2. The limitation of financial statement analysis.

The definition is:

1. The process of understanding the risk and profitability of a firm (business, sub-business or project) through analysis of reported financial information, Particularly annual and quarterly reports.
1. Conversion of the data contained in financial statements into information useful in economic decision making.

Financial statement analysis :

1. Introduction to Financial Statement Analysis.
1. Information Management.
2. The Financial Statement. .
3. Data Disclosures.
4. Financial Statement Influences.
5. Introduction to Short-Term Liquidity Analysis.
6. Advanced Short-Term Liquidity Analysis.
7. Introduction to Cash Flow Analysis.
8. Advanced Cash Flow Analysis.
9. Operating Performance Analysis.
10. Asset Utilization Analysis.
11. Capital Structure Analysis.
12. Financial Statement Valuations.

Financial statement analysis consists of :

1. Reformulating reported financial statements.
2. Analysis and adjustments of measurement errors.
3. Financial ratio analysis on the basis of reformulated and adjusted financial statements .
4. Financial statement analysis is the foundation for evaluating and pricing credit risk and for doing fundamental company valuation.