Analysis through graphical method

Graphical method

The graphical analysis method is the main method by which the identified changes in the object of the analysis may take a graphic illustration. For this purpose they use data in absolute or relative size, whose dynamics are normally present in the sphere of influence of the time factor. Modern tools provide significant opportunities to develop the scope of the graphical method for analysis. The analysis may be subject to data from both the profit and loss account and balance sheet of the company. Account can be taken and data on various indicators characterizing the company and its activities. As a result of the application of the method to add picture of the formation of the trend under the influence of certain factors.

Graphical method

(№1 video) demonstrates the application of the graphic method of analysis, as in the case of study are carrying residues in feather "Receivables from clients" company National Electric Company PLC -. Sofia.

Such relationships can be built using several digital lines - for example proceeds from sales, cost of operations and gross profit.

(See Video 2). As a way of illustrating the relationship of a similar nature can be used bar chart.

By graphicalanalysis method can illustrate dependencies affecting the share of individual elements within a general set - for example, the share of individual types of expenses within total costs of the company (see Video 3). 

Graphical method

In the Appendix using a pie chart can be presented dependencies regarding certain financial parameters for comparing two or more years - for example, the share of the balance sheet item "Securities" in the total assets of the company (see Video 4).

(see Video 3).

(see Video 4).

Commenting on the use of diagrams as a tool of graphical method for analyzing diagrams illustrate common changes and values. Through them also presented changes in the composition and structure of the object of analysis. 
Therefore graphical method is widely used in the analysis, because with its help as quickly as possible financial management as a subject of analysis collects information and makes rational management decisions. The graphical method is also used in preparing the final conclusion and findings from the analysis because with its help identified by the analyst conclusions are visual representation.