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Analogising a financial statement of any company comes about in two ways. External stakeholders view it as a source to understand the overall financial health of the firm as in itu2019s performance and business value. Internal constituents monitor it to handle the finances of the organisation in a better manner
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Analogising a financial statement of any company comes about in two ways. External stakeholders view it as a source to understand the overall financial health of the firm as in it’s performance and business value. Internal constituents monitor it to handle the finances of the organisation in a better manner. The financial statement analysis of any company encompass data regarding every aspect of it’s business activities. Evaluation is done based on the past, present and projected performance of the organisation.
The financial statement comprise of three main components i.e, the balance sheet, the income statement and the cash flow statement. Several techniques are used to analyse the finances of any firm but the three main used ones are, • External analysis is done by stockholders, bankers, creditors and the general public. They do not have access to the accounts information. They analyse on the basis of published financial statements. • Internal analysis is done by the finance and accounts departments of the firm. The objective of this analysis is to provide information to the top management for business decision making. • Ratio Analysis uses ratio metrics to calculate statistical relationships.
ScoreMe’sfinancial statement analysis tool is an useful and innovative one. • It provides insights into the company which is due to be on-boarded or appraised for credit, lead sourcing, customer profiling and vendor relationships. • The tool does quick calculation of CMA for the borrower based on the information captured. • It’s a system driven assessment of financial statements for multiple years. • The software is easy to implement by virtue of it’s ‘Plug and Play’ feature, with simple API integration. • The software does real time check for different default lists. • Finally, the tool reduces the complete turn-around time.
Few parameters on which Scoreme’sFinancial statement analysis tool work are : • Director details including signatories and past directors. • Related companies and directors It is through financial analysis only, that the key performance indicators, like, liquidity solvency, profitability and efficiency of operations in businesses of any firm is ascertained. Orignal Source – Financial Statement Analysis Tool