Tuesday, October 25, 2022

Tools of Financial Analysis

Comparative Financial Statements: It is used in making inter-period and inter-firm comparisons. They highlight the trends in performance, efficiency and financial position of a firm. 

Comparative income statement: It analyze the operational efficiency and profitability of the business             

Comparative Balance sheet: Trend of some items, group of items in two or more balance sheets of the same business on different dates. Company will form various policies for progress. 

 

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