Email this article The Need Of Financial Statement Analysis In A Firm/An Orgnization
Abstract
Financial statement analysis play a dominate role in setting the frame watt of managerial decisions through analysis and interpretation of financial statement. This paper discusses about financial „ strength and weakness of the company by properly establishing relationship between the items of balance shed and profit and loss account. In order to judge the profitability and financial soundness of the company horizontal, and vertical analyze or done. The various technique used in analyzing financial statement included 'comparative statement, common size statement, trend analysis and ratio analysis. The results suggest that the ratio approach is a highly useful tool in financial statement analysis, especially when a set of ratios is used to evaluate a firm's performance.
References
An Idiosyncratic Explanation of Earnings-Price Ratio based on Financial Statement Analysis. Vol. 2 No. 9 (Special Issue - May 2011).
Charles H, Gibson (2010). Financial Reporting And Analysis- using financial accounting information, 12th Edition. Cengage Learning.
Yating Yan. H.W. Chuang,(2010) Financial Ratio Adjustment Process: Evidence from Taiwan and North America,ISSN 1450-2887 Issue 43 (2010)0 Euro Journals Publishing. Inc. 2010
JE Kent Johan chabotar.( 1989) Financial Ratio Analysis Comes to Nonprofits. , The Journal of Higher Education: Mar 1989.
Doran nissim. stephen h. Penman,(2003). Financial Statement Analysis of Leverage and How it Informs About Profitability and Price-to-Book Ratios. Review of Accounting Studies. Kluwer Academic Publishers.
Juha-pekka kallunki, teppo martikainen and Jukka pentunenthe , (1996) proportionality of financial ratios and Implications for ratio classification, Applied Financial Economics, 1996. 6. 535-541.
Refbacks
- There are currently no refbacks.
Copyright © 2013, All rights reserved.| ijseat.com
International Journal of Science Engineering and Advance Technology is licensed under a Creative Commons Attribution 3.0 Unported License.Based on a work at IJSEat , Permissions beyond the scope of this license may be available at http://creativecommons.org/licenses/by/3.0/deed.en_GB.