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What is Financial Statement Analysis Overview about?

This chapter introduces financial statement analysis and its importance. It discusses two approaches: following prescribed routines of standard ratios, or taking a more flexible analytical approach. While the former may satisfy basic requirements, the latter is needed for a useful analysis. It also notes that while companies disseminate information to facilitate analysis, their primary goal is maximizing shareholder wealth, not education. Key tools of analysis discussed are horizontal and vertical analysis

Author

Prashob Koodathil

Language

EN