Financial Analysis

For the financial analysis is applied to a wide range of types, methods and techniques: structural, structural-dynamic, trend (perspective), inter-analysis, the coefficient analysis, factor analysis using the methods of chain of substitutions, the integral, correlation, regression, and exponential analysis as well as such common techniques as an absolute comparison of the levels achieved, the calculation absolute and relative deviations of "equity," detailing its performance for associating, grouping, and so discounting is necessary to distinguish types of models of financial analysis. The most important of these include: descriptive, predictive and normative. Descriptive models are essential. They are based on the use of financial statements and explanatory notes thereto. And are descriptive in nature. This model includes a: horizontal (temporal) analysis – a comparison of each position reporting to the previous period, vertical (structural) analysis – Identification of financial performance, trend analysis – a comparison of each position Reporting to a number of previous periods and the definition of a trend, that is the main trends in the indicator, purified from the random effects and individual characteristics of different periods, and analysis of the relative indicators (financial ratios) – calculation of the numerical relations of various forms of reporting, the definition of the relationship indicators, comparative analysis. A comparative analysis, in turn subdivided to:-farm – a comparison of the main indicators of the company and its subsidiaries, off-farm – a comparison of performance indicators with business competitors. Predictive models are Model-projected financial report based on the data or dynamic analysis based on expert forecasts of future financial development of the enterprise.

Normative models are used primarily during internal financial analysis, allow you to compare actual performance with the company legally established, the average for the industry or internal regulations of the enterprise. The model suggests setting standards for each indicator and analysis of deviations from the standards of evidence. Contents of financial analysis is largely determined by who is the user information, and what its scope economic interests in the evaluation of various aspects and dimensions of the financial activities of commercial organizations. Direction of financial analysis for each external user of financial and analytical information commercial organizations allow them (users) to focus the selection of partners, investors, kreditozaemschikov on most important issues of evaluation of their financial activities in avoid mistakes, omissions and losses due to inefficient use of financial resources.