Answer to Question #222709 in Management for N M RAO

Question

. This pandemic situations has drawn the attention of a lot of individuals to actively watch and participant in the Indian financial market. As a life-long learner, you also decide to understand the fundamentals of certain companies listed on the stock exchanges in India. One of your friends advised you to look in to the various techniques of financial analysis, as one of the way of evaluating the financials of business entities. You are done with getting an understanding about various techniques of financial analysis. Elaborate any five of the said techniques for financial analysis.

Answer 1

Techniques for financial analysis.

1. Vertical Analysis

The factors of a business are represented in this method as a percentage of a fixed value.

2.Trend Analysis

This is a technical analysis technique that attempts to forecast future stock price movements using recently observed trend data.

3.of Cash Flow Analysis 

The net income and expenses of a company are used in this technique to determine the working capital and net requirements of the business.

4.Ratio Analysis 

This method compares a specific company to its market competitor.

5.Horizontal Analysis  

This method is used to examine a company's financial statements over multiple time periods. It is typically depicted as a percentage increase over time.