topic 7 - financial statement analysis

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8 Terms

1
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evaluate horizontal analysis

a series of finanucal statement data over time

2
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trend analysis

predicts future direction based on past trends

3
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what do trend analysis require?

at least 3 years of data

4
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what does horizontal analysis highlights?

magnitude and signifiance of changes across periods

5
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vertical analysis

expresses each finanical item as a % of a base amount

6
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statement of profit OR loss

% of sales revenue

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statement of financial position

% of total assets

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what is vertical analysis useful for

comparing companies of different sizes and tracking patterns of change over time