by Saleh S. Abu-keshek on 4:50 AM
Financial Statement Analysis
FINANCIAL STATEMENT AND ITS ANALYSIS
Financial statement analysis is the biggest part of quantitative analysis. It involves looking at historical performance data to estimate the future performance.
Followers of quantitative analysis want as much data as they can find on revenue, expenses, assets, liabilities, and all the other financial aspects of a company.
The massive amount of numbers in a company's financial statement can be confusing and scary to many investors. On the other hand, if you know how to read them, the financial statements are a gold mine of information.
To learn and understand the financial situation of a business whether you are a part of management, an investor, creditor or lender, or a partner, the first step is the examination of the firm’s basic financial statement.
Each group is interested in different things. For example:
-An investor might assess profitability, growth, stability, and the rate of dividends.
-On the other hand, a creditor is much more interested in the amount of debt that a company currently has and whether it has the ability to make repayments.
