Financial position
This query is : Resolved
22 June 2016
How to analyse the company position for the particular year based on balance sheet
23 June 2016
one can make use of ratio analysis. it is a powerful tool
23 June 2016
you can take comparison from last year and compare with current year with ration analysis or cash flow statement/fund flow. and to see the term loan / cc limit and stock posititon, mostly company how make to public issue they make adj in the inventories.
23 June 2016
Balance Sheet reports the state of affairs of the company as on a particular date, to be read and analysed with the notes and other reports forming the part of such a Balance Sheet to give an overview of the company first.
Ratio analysis no doubt is an excellent tool for measurement but stand alone review would not provide a proper assessment and picture of the financial position unless and until a relevant and detailed analysis is done for the company, industry and competitors to form a micro and macro views.
Balance sheet just provides a true and fair view of affairs of the company as existed at a particular date and more or less a time statement. For understanding properly the financial position and status you also need to analyse P&L Account, Cash Flow Statements, Audit Report/s, Directors' Report, Quantitative Analysis, etc.
Ratio analysis no doubt is an excellent tool for measurement but stand alone review would not provide a proper assessment and picture of the financial position unless and until a relevant and detailed analysis is done for the company, industry and competitors to form a micro and macro views.
Balance sheet just provides a true and fair view of affairs of the company as existed at a particular date and more or less a time statement. For understanding properly the financial position and status you also need to analyse P&L Account, Cash Flow Statements, Audit Report/s, Directors' Report, Quantitative Analysis, etc.
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