Financial Analysis

853 WordsOct 5, 20114 Pages
Financial Analysis refers to the assessment of a business to deal with the planning, budgeting, monitoring, forecasting, and improving of all financial details within an organization. Understand, Identify, Analyze and Adjust Understanding your organization’s financial health is a fundamental aspect of responding to today’s increasingly stringent financial reporting requirements. To avoid risks, organizations must quickly identify ascertain financial ratios and trends acrossin liabilities and assets analyze and adjust planned and forecasted amounts act to provide regulatory statements as needed Financial Analysis applications built on the MicroStrategy platform make these activities easier and more efficient. Business intelligence applications within the Financial Analysis application area include: Budgeting and Budget Analysis Financial Performance Management Revenue Analysis Cost Analysis Expense Analysis Cash Flow Analysis Balance Sheet Analysis Accounts Receivable Analysis Accounts Payable Analysis Invoicing and Billing Analysis Profit and Loss Statements What Does Financial Analysis Mean? The process of evaluating businesses, projects, budgets and other finance-related entities to determine their suitability for investment. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance. Investopedia explains Financial Analysis One of the most common ways of analyzing financial data is to calculate ratios from the data to compare against those of other companies or

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