Business and Finance System

Posts Tagged ‘economic-financial analysis’

The study of economic and financial situation of the company is done through financial analysis. It reflects the economy and corporate profitability.

The economic-financial analysis of the company, or simply called financial analysis has as its main objective to carry out the analysis of the economic situation of the company and the measurement of return on investments.

And it is not enough that the company either from the standpoint of economic cost, but also need your financial structure is commensurate with its economic structure, not only in the present moment, in the future.

Records of financial analysis for the study of business
The financial analysis used, to carry out the study of economic and financial situation of enterprises, the following documents:

1. Balance sheet and profit and loss account. The balance sheet is a summary of the equity accounts of a company, which reflects the stance of an estate must include the proper separation of the company assets, which consists of the assets and rights and obligations, that make up person, with specific reference in it own funds or resources are there in the company.
2. Ratios method. The profit and loss account income quantifies and describes the company’s formation. In each of the items in the profit and loss account, in addition to being the figures for closing, should also include figures for the preceding year. The annual accounts for the year as close as the previous year. The fundamental concepts that make up the account are:

* To: All business expenses are recorded on the debit.
* Haber: All business income are recorded on the credit.
* Benefits: We reflect on the debit and the credit losses.
* Seat: Write a number in the account items.
* Results: The cash flow from management of the company.