Excellent document on various types of Financial Analysis.📊
Many important and useful points for individual investors also, with explanation of various concepts and terms.
corporatefinanceinstitute.com/resources/know…
Good YouTube video of the same.
Simple explanations of the first 10 topics.
Vertical Analysis : To see how well the company is performing and benchmark against other companies in the same industry.
Horizontal Analysis : To determine if a company is growing or declining, and identify important trends.
Leverage Analysis : To get a full picture of the capital structure.
Growth Rates : Analyzing the drives for growth.
Profitability Analysis : To assesses how attractive the economics of a business are.
Liquidity Analysis : To analyze a company’s ability to meet short-term obligations
Efficiency Analysis : To see how well a company manages its assets and uses them to generate revenue and cash flow.
Cash Flow : To look at the company’s ability to generate cash flow.
Rates of Return : Analyzing the rate of return on Assets, Equity, Invested capital, IRR etc.
Valuation Analysis : Estimating what a business is worth.
/END
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