A financial statement analysis assignment can be defined as examining a company’s financial statement for decision-making purposes. The company’s external stakeholders use it to understand the overall health and access and evaluate the business value and financial performance of the business. It can also be referred to as a monitoring tool that helps to manage finances as well. A company records the essential financial data on every aspect of the business activities, and it is evaluated based on the past, current, and future projected performance. There are three main financial statement analysis assignments that every company creates and monitors: the Balance sheet, Income statement, and cash flow statement. A company or an organisation uses the following financial statements to manage their business operations, and the financial statements also provide reporting transparency to their stakeholders. All the financial statements of an organisation or a company are interconnected and create different views of activities and performance in the business. The financial statement analysis is used by both the internal and external stakeholders to evaluate the business performance and values. The analyst of the companies uses the three techniques to analyse the company’s financial statement, such as horizontal, vertical and ratio analysis. The financial statements are maintained by the companies daily and used internally for managing the business; also, the internal and external stakeholders of the business use the same approach of corporate finance methodologies to maintain the performance and activities of the business and also by determining the overall performance of the business as well.
When the analyst performs comprehensive financial statement analysis, they use the multiple years of data to ease the horizontal analysis. As each financial statement is analysed with vertical analysis, it helps to understand the different categories of the statement by their influencing results. The ratio analysis is used to isolate the performance metrics in each of the following statements, bringing the data points together across the statements collectively. The Financial Statement Analysis Assignment Help can be expressed to identify the performance of the business that is important and plays a vital part in assessing the overall health of an organisation along with the value of the business.
It is a report or a statement that shows the financial worth in terms of its book value. The financial statement is categorised into three parts that consist of assets, liabilities and shareholder’s equity. In the following financial statement, the short-term assets or current assets are the cash and accounts receivable. It provides information regarding the company’s operational efficiency and the liabilities section, including the expenses arrangements and the debt capital that the company is paying off. The company’s shareholders equity consists of the equity capital investments and the retained earnings, and the retained earnings have been generated from the profit and loss statement. The balance sheet must show a balanced figure with the assets minus the liabilities equaling shareholder’s equity. Hence, the shareholder’s equity value is considered the company’s book value. It is also considered an essential performance metric that helps increase or decrease a company’s financial activities. We help the students with their financial statement analysis assignment as the calculations can be very complex; hence we assist them by helping out with their assignments.
The company’s income statement shows a categorisation of the company’s revenue against the expenses involved in the business to provide a bottom line, net income profit or loss. It consists of three parts; it helps to analyse the business efficiency on three different levels of points. To identify the gross profit, the income statement begins with the revenue and the direct cost associated with the revenue. Then after determining the gross profit, it moves to the operating profit, which is determined by subtracting the indirect expenses such as marketing cost, general cost and depreciation; finally, it generates the net profit, which is deducted from the interest and taxes. In the fundamental analysis, the income statement involves calculating gross profit margin, net profit margin and the operating profit margin by dividing the revenue. The profit margin shows where the company cost is low or high at different points of the operations.
The cash flow statement is a financial statement that provides an overview of the company’s cash flow from the operating activities, investing activities also financing activities. In the top line item for operating profit, the net income is carried over to the cash flow. The investing activities consist of firm-wide investments; in the financing activities, the cash flow includes debt and equity financing. The bottom line of the cash flows shows the amount of cash that is available with the company. In the free cash flow, the companies and the analyst also use the free cash flow statements and other valuation statements to determine the value of a company. The free cash flow statements (FCF) arise at a net present value by discounting the free cash flow that a company has estimated to generate over a period. Whereby private companies also keep a valuation statement as they progress towards potentially going public. We provide the best quality assignments, and our assignment writers provide timely solutions within a budget. Along with the following assignments, we also seek to help with essay writings, case studies, dissertations, sample writings, term paper writings, pre-proposal writings, academic projects, etc. Feel free to contact us, and we would be highly obliged to serve you and provide you with further assistance.