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