Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

STA. ROSA CAMPUS

Name: Catangay, Clarence Kaye M. Term: 2nd Term

Course & Section: BS IT 3-2 Subject: Technopreneurship

REACTION PAPER IN

Topic: Financial Analysis and Accounting Basics

INTRODUCTION:

Many business owners and company managers have found that insight gained from their examination of
company financial statements can be invaluable. Such insight can help businesses improve their
profitability, cash flow, and value.

BODY:

Financial analysis is the method involved with evaluating businesses, projects, budgets, and other finance-
related transactions to decide their presentation and reasonableness. Whether you need to grow or sell
your organization, raise extra assets or apply for business credits from banking foundations, you should
have the option to introduce a stock of your organization. This will assist you with acquiring the trust of
banks, financial backers and possible new accomplices. Organizations by and large set up this far reaching
report via completing a monetary investigation. This is separated into two phases and offers a few
advantages for organizations.

Financial analysis is utilized to assess financial patterns, set monetary approach, assemble long haul plans
for business action, and distinguish undertakings or organizations for venture. This is finished through the
combination of monetary numbers and information. The goal of financial analysis is to analyze whether a
substance is steady, dissolvable, fluid, or sufficiently productive to warrant a money related venture. It is
utilized to assess monetary patterns, set monetary approach, fabricate long haul plans for business action,
and distinguish undertakings or organizations for venture.

A financial analysis won't just assist you with understanding your organization's monetary condition,
assisting you with deciding its financial soundness, productivity and capacity to create riches, yet will
likewise give you a more inside and out see how well it works inside.

CONCLUSION:

Carrying out a financial analysis of your company therefore has many benefits and could, inter alia,
increase its performance. Keep in mind that your industry is not static. You may want to plan to conduct
periodic financial analyses.

CITATION:

Touvila, A. (2022, June 28). Financial Analysis. Retrieved July 23, 2022, from
https://www.investopedia.com/terms/f/financial-analysis.asp.