ManagementMania AppMania EduMania JobMania BusinessPages


What is Financial Analysis
Financial analysis can be considered as a set of activities which goal is to identify and complexly evaluate financial situation of an enterprise.

Financial analysis can be considered as a set of activities which goal is to identify and complexly evaluate financial situation of an enterprise. Financial analysis should recognize the health of the business, reveal its weaknesses, which could become in the future a threat for the business, and identify its strengths that the business could use in the future as an opportunity.

Financial analysis is based primarly on past data, but it is primarily a basis for decisions about future.

Financial analysis evaluates the business as a whole and in all factors that affect its financial situation. Specifically:

  • Short-term financial situation - solvency horizon of 1 year
  • Long-term financial situation - ability to pay long-term liabilites
  • Effective business operation

Financial analysis users

Information related to business financial condition is important both for business managers, but also for other subjects. Financial analysis user can be divided into external and internal:

  • External users:
  • Internal users:

Inputs to the financial analysis

Basic inputs to the financial analysis are internal information resources supplemented by external resources. Among basic resources belong:

  • Financial statements forming a final accounts (balance sheet, profit and loss account) and a supplement to the final accounts.
  • Management accounting data
  • Business statistics, development forecasts, etc.

Basic financial analysis methods

Among basic methods of financial analysis usually belong:

Related terms and methods:

Related profession:

Related management field:

previous next
Did this article help you?
Rating:
Last update: 17.03.2016

Comments

Lawrence Fields 8 months

In earlier times occupational health and wellbeing protection plan was initially commonly led alone by just deference utilizing procedures. During the different technique to work place health and wellbeing buy getfreestuffonlinenow.com coleus , protection plan enhancement is certainly led by just together what is necessities together with by just health and wellbeing objectives place at a voluntary grounds by way of the being employed network throughout every one community. So that you can valuable...

Was this helpful?
Rating:
Himanshu mishra 7 months

Hey if you were interested in playing word game then from here play word finder scrabble online without any charges and signup.

Was this helpful?
Rating:


To enter the discussion you must be signed in

Sign in


Related consulting companiesmore...