Analysis Of Financial Statements

Financial statements issued by various organizations are excellent sources that tell us about the investments, expenditures, assets and operations of the firm. However, concluding the financial health of the organization is just not that easy. This is where analysis of these financial statements is required to be able to judge the actual financial position of the organization. The focus of financial analysis is on key figures in the financial statements like Statement of Income (Profit or loss) and Statement of Financial position (Balance sheet) and the relationship that exists between them. Ratio analysis and equity analysis are widely-used tools of financial analysis. While ratio analysis is used to interpret the financial statements so that the strengths and weaknesses of the firm and the current financial position can be determined, equity analysis helps us in deciding whether to invest in a company or not. The book hopes to provide its readers with a clear picture of understanding the financial position of a company and for enabling better investment decisions