MIE258H1 Lecture Notes - Financial Statement Analysis, Financial Analysis, Financial Statement
20 Nov 2012
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Document Summary
Financial analysis is what most people think of when they talk about the study of finance. Financial analysis is the study of relationships within a set of financial statements at a particular point in time and the investigation of trends over time. This information is used to help in the decision making process when allocating limited resources. The raising of funds or financing is another major component in the study of finance. The many different options for raising funds will be discussed in future lectures. When companies differ significantly in size, comparing their respective financial statements can be difficult. Financial ratio analysis is a convenient way to address this issue. Financial statement analysis is often used to predict future sales, earnings, etc. , or future ratios. This information is necessary in order to assess how and where to invest your time and money. Financing your company, or raising funds is something that each of us will likely do at some point.
