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Financial Statement Analysis - A Completet Overview

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Although it is sometimes difficult to persuade a customer to share their financial information, it should be understood that the financial statement analysis is possibly the most important tool, which ScoreMe Solutions provides an opportunity to get a clear picture of the financial position of the customer. This tool provides a one-stop, standalone portal where your sourcing team can browse and get details about a company in the form of a simple, intuitive, insightful report. – PowerPoint PPT presentation

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Date added: 24 November 2020
Slides: 10
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Title: Financial Statement Analysis - A Completet Overview


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Financial Statement Analysis A complete overview
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  • Although it is sometimes difficult to persuade a
    customer to share their financial information, it
    should be understood that the financial statement
    analysis is possibly the most important tool,
    which ScoreMe Solutions provides an opportunity
    to get a clear picture of the financial position
    of the customer. This tool provides a one-stop,
    standalone portal where your sourcing team can
    browse and get details about a company in the
    form of a simple, intuitive, insightful report.
  • It is absolutely essential that financial
    information is obtained on customers who make
    significant representations risk in the form of
    outstanding receivables.

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  • When conducting a financial statement analysis of
    a potential or existing business client, the
    purpose is to estimating the company's past
    performance, look into at the company's future
    performance additionally. Therefore the
    performance and financial position of the
    company, in relation to others within its
    industry, can be evaluated and future risk and
    ability to meet payments in a timely fashion can
    be anticipated.
  • Financial statement analysis provides an
    essential tool in the evaluation of credit risk,
    as it can provide the analyst with valuable
    information related to the trends and
    relationships of others within his industry, the
    quality of a company's earnings, and the
    strengths and weaknesses that is intrinsic to its
    business operation. Usually, financial statement
    analysis is used to analyze whether a unit is
    stable, solvent, liquid, or profitable that is
    sufficient to warrant expanding open lines of
    credit.

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  • The analyst should aware about the following
    terms while doing financial statement analysis.
  • Have idea of the business practices associated
    with the customer's industry.
  • Good understanding of the purpose, nature and
    limitations associated with financial information
    reviewed.
  • Well-acquainted with the terminology that appears
    in the financial data provided.
  • Introduced and informed of the tools available to
    help clarify the results of the financial
    statement completely evaluation.

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The main three segments of financial statement
analysis are
  • Balance sheet containing details of assets and
    liabilities of the business. Equity is the
    monetary difference between the value of assets
    and the value of liabilities. The balance sheet
    is structured with two columns. Assets, both
    current and long-term, appear on the left side of
    the balance sheet and the liabilities, both
    current and long-term, as well as equity appear
    on the right side of the balance sheet. The total
    value of the items on the left (current asset
    long term asset) is always equal to the total
    value Items to the right of the balance sheet
    (Current Liabilities Long Term Liabilities
    Equity). 

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  • The income statement the income statement breaks
    down a revenue that a company provides to a
    bottom line, net income gain or loss, against the
    expenses involved in its business. The income
    statement is divided into three parts that help
    in analyzing business efficiency at three
    different points. It starts with revenue and the
    direct cost associated with revenue to identify
    gross profit. This then goes to operating profit
    which reduces indirect expenses such as marketing
    costs, general costs and depreciation. In the end
    it ends with a net profit that cuts interest and
    taxes.

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  • Statement of cash flow that takes aspects of
    items from both the balance sheet and income
    Statements and expresses the sources and uses of
    cash. Three types of statements. This is what
    proves to be most valuable in assessing the
    ability of the client to fulfill its commitment.
  • ScoreMe Solutions provides an innovative and
    useful financial statement analysis tool that
    provides insights into the organization which is
    due to be on-boarded or appraised for credit,
    customer profiling, vendor relationships, and
    lead sourcing.

Orignal Source- https//bit.ly/2UYF3Zf
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