Financial analysis is the process by which you evaluate how money is being managed and maximized. For example, you analyze a company’s financial statements to assess profitability, solvency, liquidity, and leverage. You may also analyze finances concerning budgets, projects, personal finances, and other related transactions.
Financial analysis is essential to understand how money is managed and used for its intended purpose. In companies, it becomes the basis for setting financial policies and building long-term plans.
Topics on Financial Analysis
- Accounting Cycle
- Accrual Accounting
- Activity Ratio
- Activity-Based Budgeting
- Activity-Based Costing
- Altman Z-Score
- Balance Sheet
- Breakeven Point
- Capital Budgeting
- Cash Flow Ratios
- Cash Flow Statement
- Cost Accounting
- Credit Rating Ratio
- Current Assets
- Current Liabilities
- DuPont Analysis
- Efficiency Ratio
- Financial Reporting
- Financial Statement
- Financial Statement Analysis
- Foreign Exchange Risk
- Full Costing
- Income Statement
- Investment Property in Accounting
- Liquidity Ratio
- Management Accounting
- Noncurrent Assets
- Noncurrent Liabilities
- Operating Leverage
- Profitability Ratio
- Solvency Ratio
- Top-Down Budgeting
- Types of Financial Ratios
- Valuation Ratio
- Weighted Average Cost of Capital (WACC)
Latest Articles on Financial Analysis
- Collateral: How it Works and Why It Matters
- Net Profit Margin: Formula, Calculation, Interpretation
- Efficiency Ratio: Type, Formula, Interpretation
- Activity Ratio: Types, Formulas, and Interpretations
- Cash Flow Ratios: Examples, Formulas, and Interpretations
- Liquidity Ratio: Examples, Formulas, How to Calculate
- Financial Ratios For Credit Rating Analysis
- Accounts Receivable Turnover: Formula, Calculation, How to Read It
- Days Sales Outstanding: Formula, How to Calculate and Read It
- Inventory Turnover Ratio: Formula, Calculation and How to Read It
- Solvency Ratio: Formulas, Examples, and Calculations
- What are the Invoice Factoring Advantages and Disadvantages
