Financial Statement Analysis - Analytical Review

Basic Financial Statement analysis using a public listed company as an example. Detailed guidance on how to compute and interpret the financial ratios are provided.

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Good article on financial analysis. There is also a method of automated financial analysis using expert system technology. It's a little much to explain in one post, but ProfitCents technology does just that. Accountants use the expert system for financial statement analysis very quickly.

You simply enter the income statement and balance sheet into ProfitCents and a written report, analyzing the numbers is generated.

Dear All,

I'm so grateful that my serires of posts made it to Tutorialized. Many thanks to the adminstrators of this site.

Dan, thanks for the info on the software. I'll definitely check it out.

Personally, the computation of the ratios is the mundane though easy part. It's trying to make sense of all the ratios and numbers that's difficult.

I started at the very beginning so people could understand how and more importantly *WHY* we are computing the ratios and how to interpret them. Hope it does help bring up financial literacy amongst non finance professionals.

I always believe there's room for improvement, so please do comment if you've any queries or suggestions.

Cheers

I couldn't agree more. Efficiency & accuracy. It would take days to analyze what the expert system can produce in a matter of seconds, once the financial data is entered

I can't post links, but do a Google search for profitcents.

The ProfitCents system is used to generate the narrative report, projections & forecasts + simple company valuations, automate analytical procedures, and provide private company industry benchmarks. Everything can be automated. It's all on their site.

it really benefit