What is Financial Statement Analysis?
Financial Statement Analysis is the process of understanding the fundamentals of the company by reviewing its financial statements namely the Income Statement, Balance Sheet and Cash Flows. Financial Statement Analysis can be performed in a structured way using Ratio Analysis. Typically, such financial analysis is done over a series of reporting periods (using the Horizontal Analysis and Vertical Analysis).
Financial Statement Analysis includes comprehensively analyzing the company's liquidity ratios, turnover ratios, profitability ratios, efficiency ratios, dividend ratios, and debt ratios.
You can learn step by step Financial Statement Analysis from the following guide
Related Financial Statement Analysis Articles:
Financial Statement Analysis
201 RESOURCES
- Accounting Liquidity
- Accounting Ratios
- Accounts Receivable Turnover
- Accounts Receivables Turnover Ratio
- Acid Test Ratio Formula
- Activity Ratios
- Altman Z Score
- Asset Coverage Ratio
- Asset to Sales Ratio
- Asset Turnover Ratio
- Asset Turnover Ratio Formula
- Average Collection Period
- Average Payment Period
- Balance Sheet Ratios
- Basic EPS
- Basic EPS vs Diluted EPS
- Beneish M-Score
- Bid Ask Spread Formula
- Book to Bill Ratio
- Cap Rate Formula
- Capacity Utilization Rate
- Capital Adequacy Ratio
- Capital Appreciation
- Capital Employed
- Capital Gains Yield
- Capital Gearing Ratio
- Capital Intensity
- Capital Turnover
- Capitalization Rate
- Capitalization Ratio
- Cash Conversion Cycle
- Cash Flow from Operations Ratio
- Cash Flow Per Share
- Cash on Cash Return
- Cash Ratio
- Cash Ratio Formula
- Cash Reserve Ratio
- CFROI (Cash Flow Return on Investment)
- Changes in Net Working Capital
- Combined Ratio
- Common Size Balance Sheet
- Common Size Income Statement
- Common Size Statement
- Comparative Balance Sheet
- Comparative Income Statement
- Contribution Margin
- Coverage Ratio
- Coverage Ratio Formula
- Credit Period
- Current Ratio
- Current Ratio Formula
- Current Ratio vs Quick Ratio
- Days in Inventory Formula
- Days Inventory Outstanding (DIO)
- Days Payable Outstanding
- Days Sales Outstanding
- Days Sales Uncollected
- Days Working Capital
- Debt Coverage Ratio
- Debt Ratio Formula
- Debt to Asset Ratio
- Debt to Equity Ratio
- Debt to Income Ratio (DTI)
- Debt Yield
- Debtor Days Formula
- Defensive Interval Ratio
- Degree of Financial Leverage Formula
- Degree of Operating Leverage
- Diluted EPS (Earnings Per Share)
- Diluted EPS Formula
- Dividend Formula
- Dividend Growth Rate
- Dividend Payout Ratio
- Dividend Payout Ratio Formula
- Dividend Yield
- Dividend Yield Formula
- Dividends per Share
- DSCR (Debt Service Coverage Ratio)
- DSCR Formula
- DuPont Formula
- Earnings Per Share (EPS)
- EBIT Margin Formula
- EBITDA Margin
- EBITDAR
- Efficiency Ratios Formula
- Equity Multiple
- Equity Multiplier
- Equity Multiplier Formula
- Equity Ratio
- Equity Turnover Ratio
- Examples of Financial Analysis
- Excess Reserves
- Financial Analysis
- Financial Analysis Tools
- Financial Gearing
- Financial Leverage
- Financial Leverage Formula
- Financial Ratios
- Fixed Asset Turnover Ratio Formula
- Gearing Ratio Formula
- Gross Income Multiplier
- Gross Margin Formula
- Gross Profit Margin
- Gross Profit Percentage
- Gross Profit Ratio
- Horizontal Analysis
- Importance of Ratio Analysis
- Interest Coverage Ratio
- Inventory Conversion Period
- Inventory Ratio
- Inventory Turnover
- Inventory Turnover Ratio
- Invested Capital Formula
- Leverage Ratios
- Leverage Ratios for Banks
- Leverage Ratios Formula
- Liquidity
- Liquidity Risk
- Liquidity vs Solvency
- Loss Ratio
- Markup
- Markup Percentage
- Negative Working Capital
- Net Debt
- Net Interest Margin
- Net Profit Margin
- Net Working Capital
- Netback
- NOPAT
- OIBDA
- Operating Cycle Formula
- Operating Expense Ratio Formula
- Operating Income Formula
- Operating Leverage
- Operating Leverage vs Financial leverage
- Operating Profit Margin
- Operating Ratio
- Operating Ratio Formula
- Overcapitalization
- Overhead Ratio
- Payout Ratio Formula
- Plowback Ratio
- Profit Formula
- Profit Margin
- Profit Margin Formula
- Profit Percentage Formula
- Profitability
- Profitability Ratios
- Quick Ratio
- Quick Ratio Formula
- Rate of Return on Investment
- Ratio Analysis
- Ratio Analysis Advantages
- Ratio Analysis Limitations
- Ratio Analysis Types
- Reserve Ratio
- Reserve Ratio Formula
- Reserve Requirement
- Retention Ratio
- Return on Assets
- Return on Average Assets (ROAA)
- Return on Average Capital Employed Formula
- Return on Average Equity (ROAE)
- Return on Capital Employed (ROCE)
- Return on Equity (ROE)
- Return on Equity Examples
- Return On Investment (ROI)
- Return on Investment Formula (ROI)
- Return on Net Assets
- Return on Operating Assets
- Return on Sales
- Return on Total Assets Formula
- Revenue Per Employee
- ROCE Formula
- ROE vs ROA
- ROIC - Return on Invested Capital
- ROIC Formula
- ROIC vs ROCE
- Segment Margin
- Solvency
- Solvency Ratios
- Stock Turnover Ratio
- Stock Turnover Ratio Formula
- Tax Equivalent Yield
- Times Interest Earned Ratio
- Times Interest Earned Ratio Formula
- Total Expense Ratio Formula | TER Calculator (with Excel Template)
- Trend Analysis
- TTM Revenue / LTM Revenues
- Turnover Ratios Formula
- Types of Financial Analysis
- Types of Financial Ratios
- Undercapitalization
- Unit Contribution Margin
- Variable Costing Formula
- Vertical Analysis Formula
- Vertical Analysis of Income Statement
- Working Capital
- Working Capital Ratio
- Working Capital Turnover Ratio
- Working Ratio
