A Study on Financial Statement Analysis

Penchala Satthish

Abstract


Financial statements are prepared primarily for decision-making. They play a dominant role in setting the frame-work of managerial decisions. The term financial analyses refers to the process of determining financial strengths and weaknesses of the firm by establishing strategic relationship between the item of balance sheet, profit and loss account and other operative data. Financial Statement Analysis is a method of reviewing and analyzing a company’s accounting reports (financial statements) in order to gauge its past, present or projected future performance. This process of reviewing the financial statements allows for better economic decision making. Globally, publicly listed companies are required by law to file their financial statements with the relevant authorities. For example, publicly listed firms in America are required to submit their financial statements to the Securities and Exchange Commission (SEC). Firms are also obligated to provide their financial statements in the annual report that they share with their stakeholders. As financial statements are prepared in order to meet requirements, the second step in the process is to analyze them effectively so that future profitability and cash flows can be forecasted.



Keywords


Financial Markets and functions, financial Policy, preparation of financial Statement analysis…

Refbacks

  • There are currently no refbacks.


Copyright (c) 2017 Edupedia Publications Pvt Ltd

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Publisher

EduPedia Publications Pvt Ltd, D-351, Prem Nagar-2, Suleman Nagar, Kirari, Nagloi, New Delhi PIN-Code 110086, India Through Phone Call us now: +919958037887 or +919557022047

All published Articles are Open Access at https://edupediapublications.org/journals/


Paper submission: editor@edupediapublications.com or edupediapublications@gmail.com

Editor-in-Chief       editor@edupediapublications.com

Mobile:                  +919557022047 & +919958037887

Websites   https://edupediapublications.org/journals/.

Journals Maintained and Hosted by

EduPedia Publications (P) Ltd in Association with Other Institutional Partners

http://edupediapublications.org/

Pen2Print and IJR are registered trademark of the Edupedia Publications Pvt Ltd.