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Financial analysis report definition

Accounting Tools

What is a Financial Analysis Report? A financial analysis report is constructed by a person who is researching a company, usually with the intent of recommending its stock to investors. These documents are intensively reviewed by investors, who need the information to make investment decisions.

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Financial analysis definition

Accounting Tools

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Financial Analysis? Financial analysis is the examination of financial information to reach business decisions. Whether to lend money to a business, and if so, what terms to offer.

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How inflation affects accounting and finance teams

Accounting Today

When inflation is high, industry professionals turn to inflation accounting strategies to increase accuracy in financial analysis and reporting.

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Opportunity cost definition

Accounting Tools

Related AccountingTools Courses Financial Analysis Managerial Economics Estimation of Opportunity Cost Opportunity cost cannot always be fully quantified at the time when a decision is made. Opportunity cost is not an accounting concept, and so does not appear in the financial records of an entity.

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Liquidity ratio analysis

Accounting Tools

It is calculated as follows: (Cash + Marketable securities + Accounts receivable) ÷ Current liabilities = Quick ratio Related AccountingTools Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements Current Ratio The current ratio compares all current assets to all current liabilities.

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Discount rate definition

Accounting Tools

Related AccountingTools Courses Capital Budgeting Financial Analysis Related Article Risk-Adjusted Discount Rate The term also refers to the interest rate that the Federal Reserve Bank charges to depository institutions that take loans from the Fed's discount window.

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Equity spread definition

Accounting Tools

Related AccountingTools Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements Related Articles Capital Structure Analysis DuPont Analysis Incremental Analysis Quantitative Analysis Types of Financial Analysis