What is financial statement analysis?
What are the different types of financial statements?
- Balance sheet
- Income statement
- Cash flow statement
- Supplementary notes
How to evaluate the financial performance of a company?
#1 How was the past performance and current position of the startup?
#2 What will be the net income and growth predictions?
#3 Is the company loan worthy?
- Activity ratios – measures the quality of the management and its performance.
- Leverage ratios – measures the startup’s dependability on debt for the operation.
- Profitability ratios – measures the startup’s profitability quotient.
- Liquidity ratios – measure the startup’s ability and capacity to remain in business.