statement analysis


Also found in: Wikipedia.

Financial Analysis

Research into data relating to the stability and profitability of businesses, especially to guide one's investing practices. At its most basic, financial analysis involves looking at financial statements to determine if a company is healthy. Balance sheets are important to financial analysis as they provide a ready-made means of investigating performance. However, it is important to note that quantitative financial analysis has limits: the accounting methods a particular business employs, for example, may make it look more or less healthy than it really is. See also: Fundamental analysis.

statement analysis

An analysis of an organization's financial and operating condition through the use of financial statements. Statement analysis is used by financial analysts in an attempt to determine the value of a firm's securities.
References in periodicals archive ?
Financial Statement Analysis and Security Valuation, Stephen H.
Mark McClish currently gives presentations on his Statement Analysis techniques throughout the U.
The theory behind the Statement Analysis techniques is that people's words will betray them.
They detail a framework for assessing and managing credit risk, including the principles and basics of lending, financial statement analysis, and credit scoring; special types like consumer, corporate, small business, and international lending, as well as security and other legal aspects; credit risk management and measurement techniques and problem loan management; other forms of finance (new chapters on micro-finance, agricultural, and quantitative finance); and four case studies.
The authors also transcribed what the participants said and annotated their statements using the concepts and linguistic features of statement analysis, such as examining minimizing and intensifying adverbs, editing adverbs, alterations in verb tense, equivocation, unique sensory details, and changes in nouns.
Financial statement analysis is an integral part of investment analysis the goal of which is to provide information on financial situation, management, plans and strategies which the company is undertaking as well as the business environment so that business decisions can be made based on information gathered (Wild at al.
In response, colleges and universities are offering more courses in areas that reflect marketplace needs, such as internal auditing, enterprise risk management, forensic accounting, financial statement analysis and ethics.
Financial statement analysis based on ratios, growth patterns and the type and content of income.
Statement analysis involves examining the words used by suspects and alleged victims to gain insight for interviewing strategies.
The CBA's proposed regulations include as accounting subjects courses in accounting, auditing, financial statement analysis, financial reporting, external or internal reporting and tax.
The Manager's guide to Financial Statement Analysis does a good job of taking a subject that is rather dry, even for accounting types like myself and making it fairly interesting.
His current research focuses on compensation and financial statement analysis.