Introductory part in Financial Analysis

Financial Analysis

Even in ancient Greece the word "analysis" is used verbatim. Then it was used and meant decomposition of all or dismemberment of its constituent elements and study and study of each of them as an integral part of the whole. As thus allowed to penetrate the essence of the research object and examine its structure.

It is known that the financial analysis ensures media management business unit by presenting alternatives for the realization of its objectives.
The economic analysis the most used and having the sense is the financial analysis, which is an accompanying effect on the financial management of the company. In defining the main objective of financial management is given importance to maximize the benefits of the owners and the market price of the company amid the resurgence of corporate control.



The financial analysis is a systematic set of techniques and tools to help financial management examine, evaluate, determine and optimize their decisions. Linking financial analysis to the process of decision-making by corporate financial management develop and defend the perspective of the management function of financial management. In certain respects tools of financial analysis is widely used in the work of additional entities such as (lenders, portfolio investors in securities statistical offices, trade unions, our customers and all other stakeholders. In particular, depending on the perspective here we distinguish between: internal financial analysis and external financial analysis; Depending on the subject, structure and content of financial statements, working capital of the company (current assets and liabilities), equity of the company (financial structure) capital structure of the company; financing company, restructuring the capital of the company, the results of operations of the company balance sheet profit of the company cash flows of the company; depending on the tools and techniques: a comparative financial analysis, financial analysis structural, dynamic financial analysis; A key for the systematization of species is the financial analysis is the distinction depending on the nature of the analysis. So we distinguish:

•   Diagnostic financial analysis that answers the question "What is the financial position of the company?";
• Factor analysis that answers the question "Why the financial situation is appropriate species?";
• Ascertained by analyzing diagnostic and prognostic financial analysis that answers the question "What would be the financial position of the company?"

The main stages in the operation of financial analyst are:

• Stage of preparation for conducting financial analysis;
• Stage of gathering the necessary information;
• Stage processing of the collected financial information;
• Stage of summarizing the results of the analysis.

Each stage is logically linked to the previous and provides the necessary foundation for the next.

Requirements of financial analysis are:

• Reliability and comparability of the data used;
• Comprehensiveness and thoroughness of analysis;
• Methodological endurance.

In his work financial analyst follows a particular technology:

To carry out the work of the accountant, but in the opposite direction - from aggregated data on the state of the company to booking individual articles.

Finance