Training Purpose
To obtain meaningful results from financial statement analysis, certain prerequisites must be met. The financial statements forming the basis of the analysis must be prepared accurately and truthfully, and the analyst must have knowledge of the company, industry, and economic developments.
Financial statements, as of their preparation date, show the company’s financial position to management, shareholders, and all stakeholders. Financial statement analysis involves examining relationships and trends among the elements to evaluate the financial position (Balance Sheet), performance results (Income Statement), and financial development (Cash Flow, Statement of Changes in Equity), enabling future predictions about the business.