Analysis and Use of Financial Statements (original) (raw)

Analysis of Financial Statements

Humanities and Social Science Research

The main purpose of this study is to determine, forecast and evaluate the best of economic conditions and company’s performance in the future. The other purpose of this study is to analyze the financial statement and than give information for financial managers to make through decisions about their business. The financial statement applies tools, analytical techniques and required methods for business analysis. It is a diagnostic tool for evaluating financing activities, investment activities and operational activities as well as an assessment tool for management decisions and other business decisions. The analysis of financial statements, respectively the analysis of the financial reports are used by managers, shareholders, investors and all other interested parties regarding the company's state. Managers use financial reports to see the situation in which the company stands and then provide information to shareholders, to see how reasonable are the investments made in the comp...

Analysis of Corporate Financial Statements as an Element of Financial Management

The article deals with the author's approach to the analysis of corporate financial statements as a tool of financial management in modern conditions, which is based on the concept of compromise between risk and profitability, is characterized by universality and relative simplicity, involving the use of well-known financial ratios. It is shown that the analysis of corporate financial statements should include the calculation and analysis of financial ratios of risk and profitability according to its actual performance, evaluation of their relationship, adjusting the values of financial risk and profitability (if necessary), forecasting indicators of corporate financial statements, determining their absolute deviations from actual values and developing decisions on financial management of the enterprise based on these deviations. A special emphasis in the article is placed on the focus of the author's approach to the analysis of corporate financial statements as a tool of financial management to ensure an acceptable ratio of risk and profitability associated with the activities of the enterprise.

Analysis for Financial Management

2001

Managers, human resources management and information technology management professionals must be able to understand financial information contained in financial statements and reports. Line managers must be able understand financial information contained in financial statements and reports in order to evaluate their unit's financial performance, to communicate clearly with other managers, and to apply financial information when making decisions. Human resources management professionals must understand financial statements and principles if they are to effectively assist line managers and be strategic partners with other business functions. This course will focus on the interpretation and use of basic financial information by non-financial managers, not on the production of financial statements and reports.

Analysis of Financial Statements: The Importance of Financial Indicators in Enterprise

IDEAS SPREAD, 2019

The main purpose of this study is to determine, forecast and evaluate the best of economic conditions and company's performance in the future. The other purpose of this study is to analyze the financial statement and than give information for financial managers to make through decisions about their business. The financial statement applies tools, analytical techniques and required methods for business analysis. It is a diagnostic tool for evaluating financing activities, investment activities and operational activities as well as an assessment tool for management decisions and other business decisions. The analysis of financial statements, respectively the analysis of the financial reports are used by managers, shareholders, investors and all other interested parties regarding the company's state. Managers use financial reports to see the situation in which the company stands and then provide information to shareholders, to see how reasonable are the investments made in the company. To potential investors, the analysis of the financial statements of the company is very important, because, first they want to know the actual state of the company and then decide whether to invest or not.

Financial Statements – Main Source Of Information For The Process Of Management And Decision Making

Journal of Information Systems and Operations Management, 2016

Managerial decisions have certain aspects that are different from the analyzed perspective. From the point of view of human resources to be hired, the management of the entity takes decisions based on the amounts investes in resources and exploitation transactions as well as a proper financing mix. These are the reasons for which accuracy and the level of detail in information has to be at a higher level in order to support the business and it increase its value. The quality of decision-making is dependent to a large extent on the amount and quality of information upon which the decision is based on, which, once adopted is considered the most important process that takes place in the management of an entity. This, more so today, as IFRS generated changes in the conceptual sense of fundamental elements of financial reporting and results, as well as increased volatility of indicators results, leading to consolidation of the interest for information, analysis and decision making.