RSM219H1 Chapter Notes - Chapter 12: Financial Analyst, Financial Analysis, External Auditor
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RSM219H1 Full Course Notes
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Document Summary
Analyst is a person doing the analysis. Financial statement analysis is the process of evaluating a company"s performance based on an analysis of their financial statements. The analysis includes calculating ratios, looking at relationships within the financial statements, and comparing the results with historical or industry benchmarks. Analysts use financial statement analysis to help them evaluate corporate performance and the risks related to investment or lending decisions involving the company. These decisions are supported by other info, including an industry analysis, sire visits, interviews with management, or other steps the analysts believe will assist in their decision making. Financial analysis provides signals about financial health, cash flows, and operating efficiency. What is the process of analyzing financial statements. The steps in the process are: determine the purpose and context of the analysis. Determine the questions that the analysis will assist in answering. Should we invest in this company: collect the info needed for the analysis.
