Financial Analysis: Ratios and Comparisons

In course

Description

This lecture covers financial analysis methods, including the identification of trends over time in key indicators such as sales, net assets, and profits. It explains how financial ratios can be used to compare companies, analyze economic structures, and evaluate competitive strategies. The purpose of ratio analysis is highlighted, emphasizing the importance of comparing figures to gain insights. Various comparison methods are discussed, including internal comparisons with earlier years and the company's plan, as well as external comparisons with industry averages. The lecture also delves into the significance of accounting policies, the limitations of ratios, and the importance of corroborating data.

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