Crash Course Financial Analysis

Financial report analysis is a process which involves varioustechniques to review and evaluate the company's financialstatements. These financial statements include Balance sheet, Profit and loss statement and other reports which aregenerated using the inflow and outflow of the company. Theanalysis provides the user's with an understanding of thecompany's financial health. This is mostly undertaken to helpthe organization take vital business decisions.
It is necessary forevery organization to maintain financial data in the desiredformat, this data is analyzed using techniques which arebeneficial for the shareholders, managers, employees and anyother interested parties. Analysis of a financial report is undertaken by experts who usevarious different analysis technique like- Ratio analysis, verticalanalysis, horizontal analysis and find out relevant informationfrom them.
The data used is past and present statementswhich are analyzed mostly to see what the future has in storefor the organization. Mostly more than one year of data isused to make the analysis fruitful and reliable.