financial analysis

(redirected from Financial Ratio Analysis)

Financial analysis

Analysis of a company' financial statements, often by financial analysts.

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.

financial analysis

see RATIO ANALYSIS, ACCOUNTING RATIOS.
References in periodicals archive ?
The finance topic receiving the most coverage across the six texts was financial ratio analysis with all six texts providing some coverage of this topic.
Financial ratio analysis is studied because it is a popular tool used by investors to determine a company's past performance and potential future performance.
While financial ratio analysis helps in assessing factors such as profitability, efficiency and risk, added factors such as macro-economic situation, management quality and industry outlook should also be studied in detail while investing in a stock.
Financial ratio analysis was used to test solvency, liquidity, profitability, turnover, efficiency and strength.
Financial ratio analysis is a very common approach to diagnose the financial strengths and weaknesses in any company.
Khajavi and colleagues (1389) in their study titled DEA Technique were introduced additional for traditional financial ratio analysis data coverage analysis techniques that using this technique, have resolved problem analysis financial Statements and difficulty determination the results of the analysis of different financial ratios.
Financial ratio analysis is a widely accepted technique of financial statement analysis (Rathore et al.
Financial ratio analysis has been widely applied in recent studies (GineviCius, Podvezko 2006; Ocal et al.
A Short History of Financial Ratio Analysis. Accounting Review, 43(2), 284-294.
Financial statements are provided so the students can perform financial ratio analysis and evaluate the company's financial disposition.
Exposure to Financial Ratio Analysis of Three Operating Firms in the Beer Industry in Nigeria.

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