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Financial Statement Analysis

1040 Words5 Pages

Financial Statement Analysis is the preparations of financial statements i.e. balance sheet and trading and profit and loss account. Financial statement analysis can be termed as the method of assessing performance, financial position of an organization. Most of the decisions that organizations would like to take are based on these assessment. Business is mainly concerned with the financial activities. In order to ascertain the financial status of every business enterprises prepares certain statements. Financial statements are mainly prepared for decision making purposes.
After preparation of the Financial Statements, one may be interested in analysing the financial statements with the help of different tools such as:
1. Comparative Statement …show more content…

Common Size Statement
3. Ratio Analysis
4. Trend Analysis
5. Fund Flow Analysis
6. Cash Flow Analysis
TOPIC CHOOSEN FOR THE STUDY:
I have chosen the topic titled “Financial Statement Analysis of Primary Agriculture Co-Operative Society” is about the analysis of various ratios that explains about the position of the organization in the market. This financial statement helps to understand the portion of profit earned and losses beard which helps to prepare for future risks.
NEED FOR THE STUDY:
The financial statement helps to study the financial performance of a company that helps to maintain the position that is held by the society. The major need for this study is to know the performance of organization over the years and take a right economic decision based on it. The decisions what the stakeholders take in the organization are depended on the study of financial statement.
OBJECTIVES OF THE STUDY:
To understand basis concept of financial analysis.
To study the financial performance of “The primary agriculture cooperative …show more content…

Financial ratio is an indication of financial assets used by the firm. Thus, its computation helps in knowing the profit position of a firm. This study analyzed the relationship between financial ratio and profitability of pharmaceutical industry. The researcher adopted these ratios to study they are Inventory turnover ratio, Debtors turnover ratio, Creditors velocity, Total assets turnover ratio and Gross Profit margin. These five ratios provided enough result to assess the performance of pharmaceutical industry during certain period. The results explained about the position that firm holds in the market and based on that suggestions were given to help them perform

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