Types of financial statement analysis, Financial Management

Assignment Help:

Q. Types of financial statement analysis?

1) External analysis

This analysis is performed by external stakeholders like lenders, suppliers, investors, and governments.

2) Internal Analysis

This analysis is performed by management or any department of the company and is usually more detailed than external analysis

3) Horizontal Analysis

This analysis is usually comparing same items of financial statements of two different entities or of same company for different years.
4) Vertical Analysis

This type of analysis consists of finding out relationships between two items of financial statements and then making comparison as explained in horizontal analysis.

5) Trend Analysis

This is almost like horizontal analysis. But here, comparing is of same item of financial statements with that of base period.


Related Discussions:- Types of financial statement analysis

Role of financial intermediaries in the financial system, Role of Financial...

Role of Financial Intermediaries in the financial system: Having designed the instrument, the issuer should then ensure that these financial assets reach the ultimate investor

Explain the structure of main financial statement, Citilink has just comple...

Citilink has just completed its 2010/11 management accounts. The directors are going to review the financial statements in the next board meeting. You have to prepare a FINANCIAL

Explain significance of international financial management, Why is it impor...

Why is it important to study international financial management? Answer:  We are now living in a world in which all the main economic functions, that are production, consumption,

TRIAL BALANCE, #The following items are found in the The following items ar...

#The following items are found in the The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000.

Explain about the valuing securities, Explain about the Valuing Securities ...

Explain about the Valuing Securities Objective of any investor is to maximise expected returns from his investments, subject to various constraints, primarily risk. Return is m

State the economic conditions of cost of capital, State the economic condit...

State the economic conditions of cost of capital General economic conditions These include demand for and supply of capital within the economy and level of expected inflatio

Compare financing arrangements and substantiate, North Star Company, a U.S....

North Star Company, a U.S. based MNC, is considering to establish a subsidiary to capitalize on the removal of Eastern European border restrictions. The subsidiary would manufactur

Securities exchange act, Securities Exchange Act of 1934 With this Act,...

Securities Exchange Act of 1934 With this Act, the Congress created the Securities and Exchange Commission. The Act empowers the SEC with broad authority over all aspects of th

Portfolio Management, Portfolio Project The purpose of this project is to h...

Portfolio Project The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice. You are gi

What is business risk, What is Business risk It is related to response ...

What is Business risk It is related to response of the firm's earnings before taxes andinterest, or operating profits, to changes in sales. When cost of capital is used to eval

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd