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MBA NOTES:TOOLS OF FINANCIAL ANALYSIS (METHODS)

TOOLS OF FINANCIAL ANALYSIS (METHODS)

The analysis of financial statements consists of a study of relationship and trends to determine whether or not the financial position of the concern and its operating efficiency have been satisfactory. In the process of this analysis various tools or methods are used by financial analyst.
theses tools are:

1. comparative statements
2. common size statements
3. Trend analysis
4. Average analysis 
5. Statement of changes in working capital
6. Fund flow analysis
7. Cash flow analysis
8. Ratio analysis

SYNOPSIS OF FINANCIAL ANALYSIS
FINANCIAL STATEMENTS / FINANCIAL REPORTS
USERS OF FINANCIAL STATEMENTS
TYPES OF FINANCIAL ANALYSIS
TOOLS OF FINANCIAL ANALYSIS (METHODS)
RATIO ANALYSIS
CLASSIFICATION OF RATIOS
LIQUIDITY RATIOS
PROFITABILITY RATIOS
LEVERAGE RATIO
EFFICIENCY RATIO



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