{"id":259822,"date":"2024-02-21T11:01:02","date_gmt":"2024-02-21T11:01:02","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=259822"},"modified":"2024-02-21T11:49:24","modified_gmt":"2024-02-21T11:49:24","slug":"a-beginners-guide-to-financial-statement-analysis","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/a-beginners-guide-to-financial-statement-analysis\/","title":{"rendered":"A Beginner's Guide to Financial Statement Analysis"},"content":{"rendered":"

Financial statement analysis is an integral part of the world of finance. Amateurs may find it tricky and critical to deal with financial statements. It is extremely important for finance professionals to master the skill of financial statement analysis and <\/span>financial modelling<\/span>. The art of financial statement analysis is a mix of the right ideas, contents and tools.\u00a0<\/span><\/p>\n

One should be equipped with the idea of what reports to analyse, determine various parameters and select the right tool for analysing. This is a brief guide that can make one understand the concept of financial statement analysis and how it works. However, a <\/span>financial analysis course<\/strong><\/a> can help keen individuals to develop and understand a deep and insightful idea about financial statement analysis.<\/span><\/p>\n

What is Financial Statement Analysis?<\/span><\/h2>\n

Financial statement analysis is the process by which the internal and external stakeholders of the company are able to take financial decisions and evaluate the performance of the business. It is a strong base regarding the financial decisions of an organisation. It allows concerned individuals to assess the overall financial health of a business and to evaluate the value of the same.\u00a0<\/span><\/p>\n

Additionally, financial statement analysis is also used to monitor the management and catering of finance throughout the organisation. The analysis of financial statements helps stakeholders to understand what areas are yielding them profits and what are resulting in losses.<\/span><\/p>\n

Objectives of Financial Statement Analysis<\/span><\/h2>\n

The major goal of financial statement<\/strong><\/a> analysis is to provide financial facts and data to the company for the decision-making process, assessing past and present performance and making predictions about the success or failure of the company.\u00a0 Here are the main objectives of financial statement analysis:<\/span><\/p>\n