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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- ITR 4 and Bank transactions
- Bank details not Visible on Traces Portal
- Taxability of Partnership firm for FY 2025-26
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- Cash balance limit and property purchases limit
- EXPORT COMMERCIAL INVOICE HSN CODE
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
