UNIVERSIDAD TECNOLOGICA DE LA

RIVIERA MAYA
Analysis and Interpretation of Financial Statements

Group AD31
Student: Oliver Jesus Garcia Guerrero
Teacher: Daria Citlali Buendia Gomez
Date: 10/09/2021
 Macroeconomic variables
Macroeconomic variables are the indicators that a country takes into account in order to
understand its economic reality in relation to other countries. Each of these variables generates
fundamental information to promote the development of a nation, based on its internal activities
and its link with the rest of the world.

A macroeconomic variable is used to analyze a part of the economic environment. Thus, if we

want to know how the economic interaction of a country's goods with the outside is evolving, we
could analyze the trade balance. The fundamental idea of a macroeconomic variable is to reflect,
usually numerically, part of the aggregate economic reality. Its study is essential to know where
we are in the economic cycle or to understand which economic policies could be more effective.

PIB: GDP (PIB) measures the total production of goods and services in a country, so its calculation
is quite complex. We have to know all the final goods and services that the country has produced
and add them together. That is, from the production of apples, milk, books, vehicles, machines
and all the goods that have been produced in the country to the services of a taxi, a dentist, a
lawyer, a bank or a teacher, among many others.

Inflation: Inflation is a general increase in the prices of goods and services in an economy over a
period of time. Inflation is one of the most important aspects in the study of macroeconomics and
in the monetary policy of central banks.

Interest rate: The interest rate or interest rate refers to the amount that is paid in a unit of time
for each unit of invested capital. It can also be said that it is the interest of a unit of currency in a
unit of time or the return of the unit of capital in the unit of time.

Exchange rates: The exchange rate or exchange rate is the relationship between the value of one
currency and another, that is, it tells us how many currencies of one currency are needed to obtain
one unit of another. At each moment there is an exchange rate that is determined by the supply
and demand of each currency, that is, through the foreign exchange market.

These macroeconomic variables influence the analysis of financial statements in the way that
when a variable has a change in which the amount or income changes, the gains / losses that will
be reflected in the financial statement will be affected.

Microeconomic variables
It is the set of economic guidelines or patterns that are specifically related to a company,
individual or legal entity, and that require a specific strategy, in accordance with its competitive
environment, to generate short-term scenarios and predetermine different results.

A microeconomic variable is often used as part of a macroeconomic variable. As we have already

said, when you take into account all the observations of a certain microeconomic variable, a
macroeconomic variable takes place. Understanding how a microeconomic variable evolves is
essential to understand the aggregate variables later. In this way, one can get to analyze the
economy with much more depth and accuracy than one who does not.
Price: The price is defined as the amount of money that needs to be delivered, as payment to
acquire a good or service. The amount of money spent in a given period of time. Microeconomics
can analyze the spending of a family, the spending of a company, etc.

Production cost: The cost of production are monetary estimates of all the expenses that have been
made within the company for the production of a good, or the provision of a service. Costs
represent an important factor for the management of the company, since if they increase, the
utility or benefit that they would obtain would be less.

The types or elements of costs involved in the cost of production are fixed costs, variable costs,
total cost and unit cost.

Installed capacity: Installed capacity is the maximum performance that can be produced in a
production plant or company in a given period, using the resources that are available at a given
time. Installed capacity is a dynamic value that changes with improvements in technology, labor
efficiency, the organization of production and work.

It is defined as the maximum output that an organization can produce with the resources available
in a given period. Installed capacity can be calculated based on a single product type or a mix of
products.

Company-Sector comparative análisis: A sector is an area of the economy in which businesses

share the same or related business activity, product, or service. Sectors represent a large grouping
of companies with similar business activities, such as the extraction of natural resources and
agriculture.

The analysis of the financial statements of a company has to be complemented by comparing its
main economic and financial data with those of other companies that are part of the same
economic sector. This comparative analysis can be approached in two ways:

Comparing the situation of the analyzed company with a sectoral average

Comparing the situation of the analyzed company with the ratios of selected companies that serve
as a reference (financial benchmarking).

The microeconomic variables influence the analysis of the financial statements in the way that it
focuses on a natural person who represents the company or directly with the company, analyzing
the financial situation in which the company is located.