Name two tools of Financial Analysis?

1. Comparative Financial Statement Analysis (Horizontal Analysis):As the name suggests, comparative analysis provides a year-on-year review of the various financial statements. For example, in the Income Statement, the Sales figure may be compared over a period of consecutive years to understand how the sales figures have grown (or declined) over the year. It should be noted that horizontal analysis compares the internal performance of the company. 2. Basic size Financial Statement Analysis (Vertical Analysis): Vertical investigation is pertinent for inner execution survey and for correlation with companions and seat checking. In vertical examination every one of the things in a specific proclamation are spoken to as a level of a specific thing. For instance, Operating Expenses, Depreciation, Amortization, Profit before assess, Tax, Profit after duty, and so on might be spoken to as a level of Sales in the Income Statement. Normal standard base can undoubtedly uncover the inward put forth up of monetary expressions and any proportionate increment and diminishing of the same. read less