文档介绍：FINANCIAL STATEMENT ANALYSIS - A BRIEF OVERVIEW
Purposes of Financial Statement Analysis
General
Screening - obtaining an overview of pany
Forecasting - basis for projecting future performance
Diagnosing - determining causes of problems and status pany
Evaluating - evaluating performance, reviewing the situation, and initiating corrective adjustments
Examples of specific decision-making contexts
Evaluating potential equity investments
Making credit-extension decisions
Determining supplier’s financial health
Determining customer’s financial health
Determining employer’s financial health/ability to maintain employment relationships
Making anti-trust determinations
Analyzing internal operations
petitors’ operations
Auditing purposes (internal, external, and IRS)
Court’s determining damage awards (or other legal judgments)
Evaluating for purposes of mergers/acquisitions
Other (., labor union disputes/negotiations)
Decision-process factors
A) Environmental factors
1) Competitive Profile
What is petitive market (output) profile of the industry?
Are there petitors with well-differentiated products or petitors with similar, commodity-like products?
Is petition a factor of concern?
2) Production Profile
What is the production (input) profile of the industry?
Is it labor intensive or capital intensive?
Is it unionized or not?
Are there constraints on t