abhishreshthaa
Abhijeet S
Financial statements are the Indicators of two significant factors are namely, the profitability and financial soundness of a business enterprise.
Analysis of financial statements means a systematic and specialized treatment of the Information found in financial statements so as to derive useful conclusions on the profitability and solvency of the business entity concerned
To know what to look for and how to interpret is the very essence of the art of analysis. Thus, financial analysis is a process of selecting, relating, and evaluating. It is the process of methodical classification, comparison and raising pertinent questions and searching answers for them.
Thus, analysis of financial statements helps the management in self-evaluation and self-appraisal. Besides, it enables the shareholders and investors to judge the efficiency of the management.
Analysis of financial statements means a systematic and specialized treatment of the Information found in financial statements so as to derive useful conclusions on the profitability and solvency of the business entity concerned
To know what to look for and how to interpret is the very essence of the art of analysis. Thus, financial analysis is a process of selecting, relating, and evaluating. It is the process of methodical classification, comparison and raising pertinent questions and searching answers for them.
Thus, analysis of financial statements helps the management in self-evaluation and self-appraisal. Besides, it enables the shareholders and investors to judge the efficiency of the management.