ACCOUNTING FOR MANAGEMENT
Summary :Financial statement analysis uses several key techniques to evaluate a company’s financial health. Horizontal analysis compares data across periods to spot trends and growth patterns. Vertical analysis expresses line items as percentages of a base figure, revealing the structure of financial statements. Ratio analysis calculates financial ratios like liquidity, profitability, and solvency to assess performance and operational efficiency. Trend analysis examines historical data to forecast future market movements. These methods collectively provide insights into a company’s profitability, stability, and efficiency, aiding stakeholders in making informed investment, credit, and management decisions.