Financial Statement Analysis
Report on
Financial Statement Analysis of Gull Ahmed Company
SUBMITTED TO
Sir Raza Haider Sawal
SUBMITTED BY
Mohammad Sadiq
Imran khan
Raza Khan
Taimur Shareef
BBA Hons Semester Vii Section A
INSTITUTE OF MANAGEMENT SCIENCES | PESHAWAR
Financial statement analysis
Introduction: Financial statement analysis is the art of transforming data from financial statement into information that is useful for informed decision making. Financial analysis involves the use of various financial statements. These statements do several things. First the balance sheet summarizes the asset, liabilities, and owners equity of a business at a moment in time, usually the end of a quarter or year. Income statement summarizes the revenues and expenses of the firm over a particular period of time, again usually year or at the end of a quarter. Simply the balance sheet represents the company position at a given point in time and income statement shows the summary of the firm profitability over time. The tool we are using in this project is Ratio analysis, Index analysis, and common size analysis.
Ratio Analysis: Ratio analysis involves methods of calculating and interpreting financial ratios to analyze and monitor the firm performance.
Types of Ratio: Financial ratio can be divided for convenience into four categories: liquidity, activity, debt, and profitability. Activity liquidity and debt ratios primarily measure the risk and profitability ratios measure the return. We are using these ratios to analyze the financial reports and the current position of the GULL AHMED Company.
Liquidity Ratios: The liquidity of a firm is measured by its ability to satisfy its short term obligations as they come due or refers to the solvency of the firm overall financial position. In liquidity ratios we are finding the liquidity of the proposed company through these two ratios 1) Current ratio the most commonly cited financial ratio measure the firm ability to meet