Project report on Financial Statement Analysis and interpretation of A Company - ENGINEERING MANAGEMENT

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Abstract: Financial statements are a formal record of the financial activities of a business, person or other entity and provide an over...

Project report on Financial Statement Analysis and interpretation of A Company

Abstract:
Financial statements are a formal record of the financial activities of a business, person or other entity and provide an overview of a business or person’s financial condition in both short and long-term. They give an accurate picture of a company’s condition and operating results in a condensed form. Financial statements are used as a management tool primarily by company executive and investor in assessing the overall position and operating results of the company. Analysis and Interpretation of financial statements help in determining the liquidity position, long-term solvency, financial viability and profitability of a firm. Ratio analysis shows whether the company is improving or deteriorating in past years. Moreover, comparison of different aspects of all the firms can be done effectively with this. It helps the clients to decide in which firm the risk is less or in which one they should invest so that maximum benefit can be earned.

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