Tag Archives | Financial Management

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 [...]

By |2017-10-09T08:51:45+05:30October 9, 2017|Financial Statements|Comments Off on Analysis of Financial Statements: 4 Methods | Financial Management

Classification of Ratios | Business | Financial Management

The ratio analysis is made under six broad categories as follows: 1.  Liquidity Ratios 2. Leverage Ratios 3. Asset Management Ratios 4. Profitability Ratios 5. Operating Ratios 6. Market based Ratios.  Category # 1. Liquidity Ratios: The liquidity ratios measure the liquidity of the firm and its ability to meet its maturing short-term obligations. Liquidity is defined as the ability [...]

By |2017-10-09T08:51:45+05:30October 9, 2017|Financial Ratios|Comments Off on Classification of Ratios | Business | Financial Management

Format of Cash Flow Statement | Company | Financial Management

The below mentioned article provides a format of cash flow statement.  Data Required in the Preparation of a Cash Flow Statement: The following basic informations are required for the preparation of a cash flow statement: a. Balance Sheets: Balance sheets at the beginning and at the end of the accounting period indicate the changes that have taken place in assets, [...]

By |2017-10-09T08:51:45+05:30October 9, 2017|Cash Flow Statement|Comments Off on Format of Cash Flow Statement | Company | Financial Management
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