Financial Statement Analysis


The concept reviews the process of evaluating and analysing company financial statements and provides you with an understanding of how to assess the financial health of the company and enable more effective decision-making.

Technique Overview

Financial Statement Analysis Definition

Financial statement analysis, or financial analysis, involves the attempt to understand the performance outcomes and risk of a firm, sub-unit or a project, through the study of financial reports (Brealey and Myers, 1996).

Financial Statement Analysis Description *

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Business Evidence

Strengths, weaknesses and examples of Financial Statement Analysis *

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Business Application

Implementation, success factors and measures of Financial Statement Analysis *

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Professional Tools

Financial Statement Analysis videos and downloads *

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Further Reading

Financial Statement Analysis web and print resources *

Financial Statement Analysis references (4 of up to 20) *

  • Beaver, W.H. (1966) Financial Ratios and Predictors of Failure. Empirical Research in Accounting: Selected Studies, supplement to Journal of Accounting Research, pp. 77-111.
  • Brealey, R.A. and Myers, S.C. (1996) Principles of Corporate Finance. (Fifth Ed.) McGraw-Hill.
  • Deakin, E.B. (1976) Distributions of Financial Accounting Ratios:Some Empirical Evidence. The Accounting Review, pp. 90-96, January.
  • Eversull, E.E. and Rotan, B.L. (1997). Rural Business-Cooperative Service. U.S. Department of Agriculture FIBS Research Report 154. March.

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