Analysis Statement Templates – 10 Free Sample Templates

Financial analysis statement is used to evaluate the financial status of a company. An analyst will perform different duties like profit and loss analysis, oversee management practices and generate business statements. Financial analysis is an exceptionally powerful tool for a variety of users of financial statements, but their objectives may vary. Financial statement analysis has many applications, including the evaluation of department and senior management performance, accounting compliance, and the profitability of business activities. Accounting principles, economic theory and empirical research are integrated to provide a framework for analysis.

Analysis of the statement can be done by using any of the two approaches available known as the horizontal and vertical analysis and the ratios method, both of which are explained below turn wise.

The first method uses the horizontal and vertical analysis. The vertical analysis is the proportional analysis of the financial statement. In vertical analysis approach each line item is listed as percentage of another item on the list, in common words every line item is expressed as a percentage of gross sales whereas every line item on the balance sheet is written as a percentage of total revenue. The horizontal analysis is the comparison of financial information over a series of reporting periods. Horizontal analysis is also known as the trend analysis.

The second method for the analysis of the financial statement as he name suggest is the use of many different ratios. A certain ratio is calculated and then it can be used to calculate relative size of number in relation to another. The obtained ration can also be used to see if the company is performing in accordance with the expectations of the investors by comparison of this ratio to the same ratio calculated for a specific prior period. Typically in the financial analysis statement the ratios are in the expected region. The ratios are given as liquidity ratio (they measure the ability of the company to stay in business), cash coverage ratio (amount available to pay interests), current ratio (measures the amount of liquidity available to pay liabilities), quick ratio (similar to current ratio but does not include inventory), activity ratio (shows the quality of managements), accounts payable/receivable turnover ratio (measures the speedĀ  at which it pays its suppliers and the speed at which it collects from accounts, and inventory turnover ratio (measures the amount of inventory needed to support a given level of sales).

Analysis statement is no doubt an excellent tool to determine the profitability of the firm, but there are certain issues you should be aware of that can lead you to a false analysis. First one is the comparability between periods. To put this in simple terms it means that the company preparing the financial statement may have changed the accounts in which it stores the financial information leading to different results time to time.

Another important factor is the comparability between companies. An analyst frequently compares financial ratios of different companies in order to form certain patterns and to see how they match up against each other. However, each company may state financial statement very differently causing the results and ratios to be incomparably wrong leading to wrong analysis.

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From printablesample.com,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From printablesample.com,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From printablesample.com,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From printablesample.com,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From printablesample.com,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From printablesample.com,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From printablesample.com,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From stationerytemplates.org,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From stationerytemplates.org,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From stationerytemplates.org,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From stationerytemplates.org,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template From myexceltemplates.org,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template in MS Word Format,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template in MS Word Format,

Here is download link for this Analysis Statement Template,

Sample Analysis Statement Templates

Here is preview of Analysis Statement Template in MS Word Format,

Here is download link for this Analysis Statement Template,

 

 

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