by
Asif Umer , Accounting Manager , Garden College Ltd
In practical world, the analysis would assist the people in role to better understand the the sources of funds and outlet of funds. To identify problems/weaknesses and making policies or supporting the policy makers to rectify in a struggle to bring company to a better position than before.
Tracking the importance of financial analysis as a tool bother to study the financial statements are Thliele detailed explains the relations between the elements of these lists, and changes in these elements in a specific time period, or periods of multiple time: In addition to clarify the magnitude of this change on the financial structure of public property, can be tailoredthe importance of financial analysis in the following points:
• Identify the credit capacity of the company
• Identify capacity or resource of the company (and determine the efficiency of the activity carried out by the company)
· Determine the optimal financing structure and the financial Ataktit the company
· Determine the appropriate volume of sales through the analysis of the equalizer and operational analysis
· Determine the net value of the company and an indicator of the true financial position of the company
• Identify the company's cost structure
· Evaluating the performance of senior management
· Assist in the development of future policies and programs of the company and provide a suitable platform for decision making
· Determine the fair value of the shares of the company
by
Silpa Thampan , Audit Assistant , Venugopal Associates of chartered Accountants
Financial analysis is the use of financial statements to analyze a company’s financial position and performance and to assess future financial performance.Financial Diagnosis is relating line items from an organisation’s financial statements to assess the organisation’s financial status or performance at a point in time; or by indicating a trend over a time series; or by comparison with another similar organisation.
Financial analysis is the use of financial statements to analyze a company’s financial position and performance and to assess future financial performance.
Financial ratio / Diagnosis analysis – relating line items from an organisation’s financial statements to assess the organisation’s financial status or performance at a point in time; or by indicating a trend over a time series; or by comparison with another similar organisation.
