FINANCIAL STATEMENTS ANALYSIS
Financial statements analysis is a useful tool to improve business decisions basis for management. The purpose of financial statement analysis is:
- To evaluate the financial position of companies in terms of liquidity, debt ratios, activity, efficiency, profitability and return on capital
- Determination of profitable / unprofitable business activities (in order to avoid a funding of long – term unprofitable activities from profitable activities of the same company)
- Corrections of bookings errors
- Reducing the tax burden in accordance with the laws