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| Financial Analysis - Meaning and Objects |
Financial Statements Analysis is largely a study of Relationship among the various financial factors in a business as disclosed by a single set of statements and a study of trend of these factors as shown in a series of Statements
The Objects of Financial Analysis are as follows :
- To find out financial stability of a business concern
- To assess the earning capacity of the firm
- To estimate and evaluate the stock and fixed assets of the concern
- To assess the firm's capacity and ability to repay short term and long term loans
- To expect about the administrative efficiency of the management of the business concern
- To estimate and examine the possibility of future growth of business
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