1) Do you feel about using financial statement analysis to evaluate an organization’s performance? 2) What are your view on analyzing investments using the equity methodology vs the market-value? 3) Are there any segments in chapter which are still unclear to you?
1) Do you feel about using financial statement analysis to evaluate an organization’s performance? 2) What are your view on analyzing investments using the equity methodology vs the market-value? 3) Are there any segments in chapter which are still unclear to you?
Financial statement analysis is an important aspect to analyze the health of a company. This analysis is not only used by investors before investing in the company but also by the other stake holders to know the future prospects of the comany.
There are various ways of financial statement analysis-- Trend analysis, common size analysis, financial ratio analysis
Some of these analysis are also used by auditors of the company to check if any irregularities exist in the accounting statements like balance sheet, profit and loss , cash flow statements etc
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