Analysis of Financial
R esults
Welcome to the world of financial analysis! In this presentation, we will
dive deep into the intricacies of analysing financial results to make
informed decisions.
by Farzona Almardanova
Introduction
The world of finance is filled with numbers and data that hold valuable insights. In this section, we will
explore the purpose and methods of financial analysis.
Purpose of F inancial Analysis
Financial analysis serves multiple purposes, including assessing
performance, evaluating risk, and making strategic decisions. Let's
uncover how it drives informed decision-making.
Methods of F inancial Analysis
Vertical Analysis
Horizontal Analysis
Breaks down financial statements by
Compares financial statements over
percentage to analyze the relative
time to identify trends and changes in
importance of different line items.
performance.
R atio Analysis
Calculates financial ratios to gain insights into liquidity, profitability, and efficiency.
Key Financial Ratios
1
Current Ratio
Measures a company's
2
Return on
Investment (ROI)
3
Debt-to-Equity Ratio
Indicates the proportion
ability to pay its short-
Assesses the efficiency
of debt used to finance a
term obligations.
of an investment.
company's assets.
Interpreting the Results
Qualitative Analysis
Comparative
Analysis
Trend Analysis
Examining non-financial
Benchmarking financial
financial data to predict future
factors that could impact a
results against competitors to
performance.
company's performance.
gain insights and identify
opportunities.
Identifying patterns in
Limitations of F inancial
Analysis
While financial analysis provides valuable insights, it's essential to
consider its limitations, such as reliance on historical data and challenges
in comparing companies from different industries.
Conclusion
Financial analysis is a powerful tool that equips businesses with the knowledge to make informed
decisions. It enables stakeholders to navigate the complex world of finance with confidence.