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Tools of Financial Statement Analysis by M.Hashaam
Tools of Financial Statement Analysis by M.Hashaam
Presented To: Anam Bukhari Presented By: M.Hashaam Roll No. : AM552381 Class: MBA ( B&F ) 4thSemester
Acknowledgment
First of all thanks of Allah who is most beneficent and the most merciful whose blessings are abundant and favors are unlimited. It is my pleasure to acknowledge the guidance and support of Teachers.
Financial Statement Analysis Financial statement analysis is the process of identifying of financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit &loss account,"
Tools of FSA
Tools
Ratio Analysis
Ratios are an analyst's microscope; they allow us get a better view of the firm's financial health than just looking at the raw financial statements. Ratios are useful both to internal and external analysts of the firm. It has followings: Liquidity Ratios Leverage Ratios Profitability Ratios Efficiency Ratios
Trend Analysis
Trend analysis involves the examination of ratios over time. Trends, or lack of trends, can help managers gauge their progress towards a goal. Furthermore, trends can highlight areas in need of attention. It includes followings: Horizontal Analysis Vertical Analysis