What is Time Series Analysis?In order to evaluate the performance of a company, its past can be compared with the present data. When comparisons of past and present data are done, the process is known as Time Series Analysis. Time series are stretched over a period of time rather than ... Read More

What is Industry Ratio Analysis?In order to check the financial condition of a firm, the financial health of the firm may be compared with the other players in the industry. It gives an insight into the company’s performance vis-a-vis its competitors. The performance of a company may look very impressive ... Read More

A number of ratios are used in financial analysis to measure the profitability and the overall financial health of the company in the short as well as in the long terms. These ratios are mainly used by the investors, owners of the company, and management. The short-term creditors are interested ... Read More

What is a Ratio?A ratio, in simple terms, expresses a relationship between two or more things. Ratio is an indicated quotient of two mathematical terms that shows a relationship and expresses a fact.In the case of financial analysis, a ratio is used as a benchmark to estimate the financial position ... Read More

What is Meant by Financial Analysis?Financial analysis is a method of finding the strengths and competencies of a firm by establishing relationships between the items on the balance sheet and the profit and loss account. It is very essential for firms to succeed by focusing on needful financial points and ... Read More

Apart from having excellent analytical value, the statement of changes in the financial position helps stakeholders understand numerous other aspects of a business. It offers insights into the working capital and cash inflow position of a company. As the statement includes funding details of the past, it helps analysts in ... Read More

In broader terms, the sources of cash flow include the following −Profitable operations of a firmDecrease in assets except cashProceeds from sale of ordinary shares or preference share issueIncrease in liabilities (including bonds and debentures)Uses of Cash FlowFollowing are some of the uses of Cash Flow −Loss arising from operationsIncrease ... Read More

Although a lot of people consider cash flow statement and funds flow statement to be the same; however, they are different in many aspects. Right from their popularity to their use, they have differences in many forms.Following are the major differences that separate cash flow and funds flow statements −Reporting Financial ... Read More

Sources of FundsThere are some notable sources of funds or working capital for firms in their financial statements. These sources are as mentioned below −Funds from OperationsThe most important source of funds for a firm is its profit from operations. As all companies work to gain as much profit as ... Read More

The working capital flow occurs when there is a net increase or decrease in working capital due to a transaction. There are some transactions involved in a firm’s projects that change working capital. Whereas, there are other transactions that have no net effect on the working capital.Usually, items from profit ... Read More