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As a financial analyst, what analytical tools do you use to detect financial symtoms?

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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2016/12/25
Karan Bodiwala
by Karan Bodiwala , Manager , BK Accounting and Tax Consultancy DMCC

there are  three meethods

1) Balancesheet analysys: Symtoms are judged based on balancesheet ratios major ones ,Liquidity ratios, FACR, workingcapital ratios, yield, ROC and IRR

2) Cashflow Analysys and cash budgets: There  are two methods direct  and indirect  depend upon nature of business Mostly uses indirect method

3) Capital Budgeting  ratios like enterprise value, Cost of captal, valution of business , intrinsic value of . shares etc 

All three methods help anyone  to give good insight in one's own business financial symptoms and also lead to resolution of the same 

I hope this is suffice and comprehensive answer. Incase iam wrong please share views . as . well  

Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

Agree with the reply of Mr. Waleed Hassan.

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Thanks for invitation 

Techniques of analysis will include:

1. Comparison of financial statements over time 

2 Trend analysis 

3 common size statements 

4. Ratio analysis etc

Waleed Hassan
by Waleed Hassan , Assistant Account Officer , Gammon Pakistan Limited

Two methods are used to analyze financial statements.

i. Horizontal Analysis

ii. Vertical Analysis

Horizontal Analysis is the comparison of financial information over series of reporting periods either by figures.

Vertical Analysis is the analysis of financial statements by using different types of ratios like Liquidity ratios, Activity ratios, Profitability ratios etc.

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