financial analysis

(redirected from Financial-Statement 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 ?
Chapter 4 is a basic tutorial on financial-statement analysis. The reader who makes it to this point has finished the simple stuff and is about to enter into a world of relevant and extremely important information about the organization and execution of an investigation.
The authors claim that their book can be used for an introductory level for both graduate students (M.B.A.) and undergraduate students with minimal business experience and for intermediate courses on financial-statement analysis, financial reporting, of international accounting.
The book also covers main accounting issues such as taxation, financial-statement analysis, transparency, and disclosure systems in the international arena.