Ratio Analysis

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Written by:

Thelma C


Date added:

April 11, 2016








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13 / 3582


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Financial statement analysis involves rearrangement of financial information, comparison, analysis and interpretation of that information. Financial statement analysis can be external or internal; horizontal or vertical; and intra-firm or inter-firm. Analysis done by the management to assess the financial health of the organization and its operational efficiency is called internal analysis...
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Analysis carried out by parties external to the organization such as investors, credit rating agencies, government agencies etc. is called external analysis. Horizontal analysis compares financial data over a number of years to analyze the trend. Vertical analysis is based on the financial data of a particular year...
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