Financial Statement analysis, also otherwise known as financial analysis is a process that refers to analyzing the financial statements of an organization with the objective of ascertaining the financial situation of a business and thereafter making informed decisions regarding the business based on sound financial information.
Task requirements:
- Choose two or more companies from same industry from FTSE 100.
- Compare two or more years of their financial statements.
- The analysis should be presented in tables and graphs such as pie, line and bars chart.
- The analysis should be critically review and the consequences of historical data.
Professional experts conduct it in the field by assessing financial reports prepared for a financial year. So, what is financial statement analysis? It studies accounting ratios involved in financial transactions mentioned in a balance sheet.
The following ratios are included in a financial statement analysis:
Asset utilization ratio
Leverage ratio
Valuation ratio
Profitability ratio
Liquidity ratio
Market Prospect Ratios
Market benchmarks
