In this reading we will learn about how an analyst can use the financial reports to perform detailed financial analysis of a company.
A financial analyst uses many tools to perform detailed financial analysis of a company. The most widely used tools are ratio analysis, common size statement analysis, graphical analysis, and regression analysis. In this reading we will focus on calculating and interpreting financial ratios. We will learn about the important financial ratios, analysing the performance of a company using these ratios, and DuPont analysis.