CBM1 2nd EXAM

Financial statement analysis is the process of analyzinga company’s financial statements for decision-makingpurposes.

• Financial Statement Analysis

• External stakeholders

• Internal constituents

Use it to understand theoverall health of an organization as well as to evaluatefinancial performance and business value.

• Financila Statement Analysis

• External stakeholders

• 
  Internal constituents

uses statistical trendsgathered from trading activity. It attemptsto understand the market sentiment behindprice trends by looking for patterns andtrends rather than analyzing a security’sfundamental attributes.

• External stakeholders

• Internal constituents

• Fundamental analysis

• Technical analysis

uses ratios andfinancial statement data to determine theintrinsic value of a security.

• Internal constituents

• External stakeholder

• Fundamental analysiss

• Technical analysis

uses ratios andfinancial statement data to determine theintrinsic value of a security.

• Internal constituents

• External stakeholder

• Fundamental analysiss

• Technical analysis

uses statistical trendsgathered from trading activity. It attemptsto understand the market sentiment behindprice trends by looking for patterns andtrends rather than analyzing a security’sfundamental attributes.

• External stakeholders

• Internal constituents

• Fundamental analysis

• Technical analysis

Use it as a monitoring tool for managing the finances.

• Financial Statement

• Externals stakeholder

• Internal constituents

is used in financialstatement analysis to compare historical dataover a number of accounting periods. It predictfuture performance.

• Fundamental analysis

• Horizontal analysis

• Vertical analysis

• Ratio analysis

is the proportional analysis of afinancial statement, where each line item on afinancial statement is listed as a percentage ofanother item.

• Fundamental analysis

• Horizontal analysis

• Vertical analysis

• Ratio analysis

is a quantitative method of gaininginsight into a company's liquidity, operationalefficiency, and profitability

• Fundamental analysis

• Horizontal analysis

• Vertical analysis

• Ratio analysis