Tools of Financial Analysis:
Financial analysis transforms raw information of financial statements in helpful financial information. Only subsequent to financial analysis, we can employ financial statements for decision making. This financial information is helpful for planning. For illustration, we can predict our future ability of earning on advertising when we did financial analysis of our advertising expenditures with direct return on investment in advertising. Similar to this, we can do financial analysis of all items of gain and loss account, cash flow statement and balance sheet.
For doing financial analysis, we utilize following tools.
A. Financial Statement Analysis:
The financial statement analysis is that tool of financial analysis in which we make and highlight the important relationships of various items of financial statement. We too interpret that relationship in easy words. For illustration, an investor might be interested to know past earning data with its connection with company's investments. Two kind of financial statement analysis are very significant. One is horizontal analysis and the second is vertical analysis. In horizontal analysis, we compare each and every item of balance sheet and profit-loss account with previous year’s balance sheet and profit and loss account's items. In vertical analysis, we transform each element of the information into a percentage of the net amount of statement so as to set up relationship with other components of similar statement.
B. Ratio Analysis:
In actuality, it is also financial statement analysis although for detail study we can build separate topic of study. We compute different ratios such as balance sheet ratios, revenue ratios and mixed ratios. Ratio analysis is mainly based on the fact, if we make relationship among two accounting figures, we can obtain helpful information associating to performance, strengths and weakness. For illustration, we know that according to the rule of thumb, debt equity ratio must not more than 2:1 since it is risky. As an investor, we compute debt -equity ratio prior to invest our money in the form of debt. Here are two company and we have compute its debt equity ratio.
Debt - Equity ratio = Total debt/ Total shareholder fund
Debt Equity ratio of X co. = 690/1000 = 0.69 Debt Equity ratio of Y co. = 1060/500 = 2.12
We see the debt equity ratio of Y Co. is more than our rule of thumb. Therefore, we should invest in company X's debentures.
Latest technology based Finance Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Finance help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Finance, project ideas and tutorials. We provide email based Finance help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Finance. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Finance Homework help and assignment help services. They use their experience, as they have solved thousands of the Finance assignments, which may help you to solve your complex issues of Finance. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
comparision of the camera tubes, characterstics, image orthicon, vidicon, plumbicon
tutorsglobe.com role of f0–f1 atpase assignment help-homework help by online oxidative phosphorylation tutors
www.tutorsglobe.com offers structured analysis homework help, assignment help, case study, writing homework help, online tutoring assistance by Software Engineering tutors.
www.tutorsglobe.com offers preparation of 2º & 3º amines homework help, preparation of 2º & 3º amines assignment help, online tutoring assistance, organic chemistry solutions by online qualified tutor's help.
tutorsglobe.com bohr quantum condition assignment help-homework help by online wave nature of electrons tutors
Aves tutorial all along with the key concepts of Introduction to Aves, External Features of Birds and Adaptive Features of Flight
The characteristics of activity relies costing - It enhances the traceability of the overhead costs that results in more precise unit cost data for management.
tutorsglobe.com blood group typing assignment help-homework help by online tissue transplantation tutors
animal kingdom tutorial all along with the key concepts of characteristics of invertebrates, difference invertebrates and vertebrates, phylum protozoa, features of phylum protozoa, categorization of protozoan and amoeba phylum
tutorsglobe.com carrier concept assignment help-homework help by online active absorption tutors
Hire the best Crusaders and Muslims-12 Century Assignment Help tutors and get resolved from complex academic tasks at low prices.
Separation of Peptides tutorial all along with the key concepts of technique to Separation of Peptides, Separation Based on Charges, Method of Electrophoresis, Ion Exchange Chromatography and Affinity Chromatography
We have seen that, in the early days of financial reporting, stewardship was the key issue. The main aim was to recount what had happened so as to make stewards (managers) accountable and perhaps, therefore, more careful in deploying the assets of the owner.
almost all businesses that include more than a few owners and/or employees are set up as limited companies.
highly qualified tutors are available 24x7 with prominent finite automata assignment help service and help to fetch top grades.
1937246
Questions Asked
3689
Tutors
1444615
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!