by
FATEH BOUCHENE , institut d'emission , banque centrale d'algerie
The financial analysis consists of an in-depth examination of a company's accounts and prospects, in order to provide:
A valuation of the company, mostly for current or prospective shareholders;
Or an assessment of its sole solvency, to determine whether the analyzed firm can be an acceptable counterparty (supplier, bank, rating agency);
Or an internal diagnosis to support strategic choices concerning future financing methods.
The purpose of this analysis is to provide a synthetic vision, based on information from various sources but above all from accounting information, which highlights the reality of the situation and which should help the manager, the investor and the lender in Their decision-making. The most frequently studied aspects are the profitability, the solvency and the liquidity of the activity.The main objectives of the activity diagnosis are:
To measure the potential of the market on which the company operates,
To evaluate the competition and the risks in this market,
To assess the competitiveness of the company and its potential,
To deduce the opportunity to resume or not the case.
