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.
Long answer
Comparative Statements: This is a technique comprises of comparison of different items of the Profit and Loss Account and Balance Sheets of two or more periods
Comparative Income Statement: in this technique, significant information is obtained from the Comparative Income Statement.
Average Analysis: This is a technique used whereby the trend ratios are compared with the industry average.
Trend Analysis: This is a technique used in technical analysis that attempts to predict future stock price movements based on recently observed trend data.
Ratio Analysis: This method compares a particular company with its competitor in the market.
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