Q. Types of financial statement analysis?
1) External analysis
This analysis is performed by external stakeholders like lenders, suppliers, investors, and governments.
2) Internal Analysis
This analysis is performed by management or any department of the company and is usually more detailed than external analysis
3) Horizontal Analysis
This analysis is usually comparing same items of financial statements of two different entities or of same company for different years.
4) Vertical Analysis
This type of analysis consists of finding out relationships between two items of financial statements and then making comparison as explained in horizontal analysis.
5) Trend Analysis
This is almost like horizontal analysis. But here, comparing is of same item of financial statements with that of base period.