Thinking about the completion and even starting with that financial analysis assignment? Have you planned on it? Gives you headaches. Not anymore! Various tools and techniques are used for the financial analysis. It can be difficult at times for the students. However, once the tools and the right techniques are known, it can become a hand on assignment and easier. It is important that the student stays in touch with the tools that come up for the better and more improved financial analysis. Here is a list of May tools and techniques that you can use for the better and more detailed financial analysis assignment.
- Horizontal Analysis or the Comparative Financial Statement Analysis is the tool with the help of which the year on year financial statements of the given organization can be analyzed in detail. For instance, the sales figures over a given period can be compared in the income statement.
- The second main tool is the Vertical Analysis, also known as the Common-size Financial Statement Analysis. This tool is used for the review of the internal performance of the company. It also carried out a comparison of the benchmarking and peers. All of the items that are included in the vertical statement are represented in the forms if a percentage of the total of the selected item. For instance; Depreciation, Profit before tax, Amortization, are some of the main items that are represented as the percentage of sales in the income statement.
- The third main tool that can be used for the financial analysis assignment is known as the Ratio analysis. It is one of the most widely used tools in financial analysis. It is known that the ratio gives the comparison between two numbers. They are more popularly used as a theycan help in generating an internal review of the company. It can help in the comparison among and between the two companies.
- Graphic analysis helps in the image representation of the overall performance of the company.
- Trend analysis helps in the analysis of the trend of certain items over a period. It is one of the main tools that are generally used as a statistical tool. It is often used along with the ratio analysis, vertical as well as horizontal analysis.
- One of the most important tools is known as the regression analysis. It is also used as a statistical tool and it is used to compare the variables and the relationship between the variables. The relationship between the dependent and independent variable is looked for as it is seen that the dependent variable is connected and linked with more than one independent variables.
So there you Go! Grab your pens and come up with one of the best financial analysis for the chosen company. Get grades. These tools are waiting got be used