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Financial Statement Analysis
A. Financial Statement
Financial statement is the documents that provide information about the financial situation of a company that describes the investment activities, financing, and operations company.
That exist in financial statement are:
· Balance Sheet is summarizes the assets, liabilities, and owners’ equity of a company at the end of a year;
· Income Statement is summarizes the revenues and expenses of the firm at the end of a year;
· Statement Of Changes In Equity to show the changes accounts of equity
· Statement Of Cash Flow to show cash inflow and cash outflow that separate based on operating , investing, and financing;
· Notes to financial statement(CALK)to explanation of information that include the part which is important from financial statement .
B. Financial Statement Analysis
Financial Statement Analysis is the process of reviewing and evaluating a company's financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more effective decision making.
Technique for financial statement analysis are:
· Horizontal analysis
· Cross-section analysis
· Common-size analysis/vertical analysis
· Financial analysis ratio
· Discuss and management analysis
Scope of financial statement analysis
· Liquidity Analysis;
· Solvency Analysis;
· Profitability Analysis;
· Cash Flow Analysis;
· Banckruptcy Prediction Analysis;
· Risk Analysis;
· Investment Analysis.