Create
Learn
Share

FINANCIAL STATEMENT ANALYSIS FRAMEWORK

rename
msk2222's version from 2018-02-03 20:09

Summary

This page helps you learn capitals of countries.

Phases and input-output

Question Answer Column 3
1.Articulate the purpose and context of the analysisNATURE OF FUNCTION, such as EVALUATING an equity or debt investment or ISSUING a credit rating. Communication with client or supervisor on needs and concerns. Institutional guidelines related to developing specific work productSOP or OBJ OF ANALYSIS. A LIST of specific Qs to be answered by the analysis. NATURE and CONTENT of report to be provided. TIMETABLE and BUDGETTED resources for completion.
2.Collect input dataFINANCIAL STATEMENTS, other financial data, questionnaires, and industry/economic data. DISCUSSIONS with management, suppliers, customers, and competitors. Company site visits (e.g., to production facilities or retail stores).Organized financial STATEMENTS. Financial DATA TABLES. Completed Qs, if applicable.
3.Process dataData from the PREVIOUS phase.ADJUSTED financial statements. COMMON-SIZE statements. RATIOS and GRAPHS .FORECASTS.
4.Analyze/interpret the processed dataINPUT AND PROCESSED Analytical RESULTS.
5.Develeop,communicate conclusions and recosANALYTICAL results and previous REPORTS. Institutional guidelines for published reports Analytical reportANSWERING questions posed in Phase 1.RECOMMENDATION regarding the PURPOSE of the analysis, such as whether to make an investment or grant credit
6.Follow-upInformation gathered by periodically REPEATING above steps as necessary to determine whether changes to holdings or recommendations are necessary.UPDATED reports and RECOMMENDATIONS.
memorize

Articulate the Purpose and Context of Analysis

Question Answer
The PURPOSE of an analysisguides further DECISIONS about the APPROACH, the TOOLS, the DATA SOURCES, the format in which to report the results of the analysis, and the relative IMPORTANCE of different aspects of the analysis.
define the contextWho is the INTENDED AUDIENCE? What is the END PRODUCT—for example, a final report explaining conclusions and recommendations? What is the TIME FRAME (i.e., when is the report due)? What RESOURCES and resource CONSTRAINTS are relevant to completion of the analysis?
Analysis QUESTIONSWhat has been the relative growth rate of the companies, and what has been the relative profitability of the companies?
memorize