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INTERPRETATION AND ANALYSIS OF FINANSIAL STATEMENTS

Journal: Innovative Economics and Management (Vol.II, No. 1)

Publication Date:

Authors : ;

Page : 109-113

Keywords : Vertical Analysis; Common-Size Statement; Comparative income Statements;

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Abstract

This article shows how we use financial statements to evaluate a company's financial performance and condition. We explain financial statement analysis, its basic building blocks, the information available, standards for compari - sons, and tools of analysis . Three major analysis tools are presented: horizontal analysis, vertical analysis and ratio analysis. We apply each of these using Research in JSC “Telasi” financial statements. This article expands and orga - nizes the ratio analyses introduced at the end of each article. Financial statement analysis applies analytical tools to general-purpose financial statements end related date making business decisions. It involves transforming accounting data in to more useful information. Financial statement analysis reduces our reliance on hunches, guesses, and intuition as well as our uncertainty in decision making. This article describes the purpose of financial statement analysis, its information sources, the use of comparisons, and some issues in computations

Last modified: 2018-02-14 05:57:02