Tools of Financial Analysis:
Financial analysis transforms raw information of financial statements in helpful financial information. Only subsequent to financial analysis, we can employ financial statements for decision making. This financial information is helpful for planning. For illustration, we can predict our future ability of earning on advertising when we did financial analysis of our advertising expenditures with direct return on investment in advertising. Similar to this, we can do financial analysis of all items of gain and loss account, cash flow statement and balance sheet.
For doing financial analysis, we utilize following tools.
A. Financial Statement Analysis:
The financial statement analysis is that tool of financial analysis in which we make and highlight the important relationships of various items of financial statement. We too interpret that relationship in easy words. For illustration, an investor might be interested to know past earning data with its connection with company's investments. Two kind of financial statement analysis are very significant. One is horizontal analysis and the second is vertical analysis. In horizontal analysis, we compare each and every item of balance sheet and profit-loss account with previous year’s balance sheet and profit and loss account's items. In vertical analysis, we transform each element of the information into a percentage of the net amount of statement so as to set up relationship with other components of similar statement.
B. Ratio Analysis:
In actuality, it is also financial statement analysis although for detail study we can build separate topic of study. We compute different ratios such as balance sheet ratios, revenue ratios and mixed ratios. Ratio analysis is mainly based on the fact, if we make relationship among two accounting figures, we can obtain helpful information associating to performance, strengths and weakness. For illustration, we know that according to the rule of thumb, debt equity ratio must not more than 2:1 since it is risky. As an investor, we compute debt -equity ratio prior to invest our money in the form of debt. Here are two company and we have compute its debt equity ratio.
Debt - Equity ratio = Total debt/ Total shareholder fund
Debt Equity ratio of X co. = 690/1000 = 0.69 Debt Equity ratio of Y co. = 1060/500 = 2.12
We see the debt equity ratio of Y Co. is more than our rule of thumb. Therefore, we should invest in company X's debentures.
Latest technology based Finance Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Finance help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Finance, project ideas and tutorials. We provide email based Finance help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Finance. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Finance Homework help and assignment help services. They use their experience, as they have solved thousands of the Finance assignments, which may help you to solve your complex issues of Finance. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Features of Avian Superorder Neognathae tutorial all along with the key concepts of Strigiformes, Galliformes, Columbiformes, Psittaciformes, Sphenisciformes, Coraciiformes, Piciformes and Phoenicopteriformes
tutorsglobe.com immunology assignment help-homework help by online microbiology tutors
Plant Cell Structure tutorial all along with the key concepts of Nucleic Acids-DNA and RNA, Cell Wall, cell Membrane, Chloroplasts, Nucleus, Vacuole, Cytoplasm, Golgi Apparatus and Endoplasmic Reticulum
DNA Replication and Transcription tutorial all along with the key concepts of Introduction to DNA Replication, DNA transcription, Initiation of transcription and Termination of Transcription
Cement and binding minerals tutorial all along with the key concepts of Mineral composition of Cement, Classes of Cements, Natural Cements, Aluminous Cement and Portland cement
Learning-Communication and Social behavior tutorial all along with the key concepts of Habituation, Classical conditioning, Instrumental conditioning, Latent learning and Insight learning
tutorsglobe.com epidemiology assignment help-homework help by online streptococcus pyogenes tutors
Theory and lecture notes of Higher Order Methods all along with the key concepts of Variable Step Size and RK45, Fourth Order Runge-Kutta, The order of a method. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Higher Order Methods.
tutorsglobe.com passive transport assignment help-homework help by online membrane transport tutors
front panel control of cro - on - off: the on-off switch control employed to manage the cro in on-off position.
tutorsglobe.com respiration assignment help-homework help by online energy and enzymes tutors
Theory and lecture notes of Numerical Differentiation all along with the key concepts of functions and data, Approximating derivatives from data, Errors of approximation, Partial Derivatives. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Numerical Differentiation.
www.tutorsglobe.com free tutorials on system development life cycle method, systems analysis methods- it is a step-by-step, structured process for the development of a system. this process draws upon the engineering approach to the analysis and solution of complex problems.
Appoint qualified tutors from Managerial Accounting Assignment Help service at viable prices to secure notable grades.
tutorsglobe.com rigor mortis assignment help-homework help by online muscles tutors
1960681
Questions Asked
3689
Tutors
1453422
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!