Analysis of Financial Statements: 4 Methods | Financial Management

The methods used in analysis of financial statements are as follows: 1. Comparative Financial Statements 2. Common-Size Statements 3. Trend Ratios 4. Ratio Analysis. Method # 1. Comparative Financial Statements: Comparative financial statements are statements of financial position of a business designed to provide time perspective to the consideration of various elements of financial position embodied in such statements. Comparative [...]