The study and interpretation of the relationships between various financial variables, by investors or lenders.
The process of calculating financial ratios for your business in order to determine trends and to compare its performance with that of other businesses in the same industry. (See Current Ratio, Debt to Equity and Gross Profit Margin.)
The analysis of financial statements as a means of determining the intrinsic value of a company. The analysis usually involves the comparison of liquidity, gearing and profitability ratios over time and between companies. This is the basic tool of fundamental analysts.
Comparison of actual or projected data for a particular company to other data for that company or industry in order to analyze trends or relationships.
a method of analyzing a business by looking at its balance sheet and income statement
Description of the company's success over time by means of selected key figures from the balance sheet, the profit-and-loss account and the cash flow statement.
Utilizes the data from all four financial statements and provides a broader perspective of the firm's financial condition. Can ascertain the profitability of a firm, its ability to meet short-term obligations, the extent to which the company is financed by debt, and whether the management is utilizing its assets effectively.
A way of expressing relationships between a firm's accounting numbers and their trends over time that analysts use to establish values and evaluate risks.
is the use of a variety of ratios in analyzing the financial performance and condition of a company.
Ratio analysis is the study of the relationships between financial variables. Ratios of one business are often compared with the same ratios of similar businesses or of all operators in a single industry. This comparison indicates if a particular businessâ€(tm) financial statistics are suspect. Likewise, a particular ratio for a business may be evaluated over a period of time to determine if any special trend exists.
is the study of financial condition and performance through ratios derived from items in the financial statements or from other financial or non-financial information. (420.01.1h)
The examination of the relationships between a firm's accounting numbers and trends over time.
A way of expressing relationships between a firm's financial numbers. Ratios are most commonly used to analyze the financial and operational characteristics of a company in an industry, market, or region. Ratios give managers a tool to conduct comparison and trend analysis.