Financial analysis as a financial management instrument

The financial market is one of the elements of the market-oriented economy. The financial analysis is a fundamental element of the financial controlling business. The purpose of this article is to inform briefly about horizontal and vertical financial statements analysis as the source of competitive...

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Main Author: Stehlíková Beáta
Format: Article
Language:English
Published: Technical University of Kosice 2001-12-01
Series:Acta Montanistica Slovaca
Subjects:
Online Access:http://actamont.tuke.sk/pdf/2001/n5/24stehlikova.pdf
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author Stehlíková Beáta
author_facet Stehlíková Beáta
author_sort Stehlíková Beáta
collection DOAJ
description The financial market is one of the elements of the market-oriented economy. The financial analysis is a fundamental element of the financial controlling business. The purpose of this article is to inform briefly about horizontal and vertical financial statements analysis as the source of competitive advantage of the firm. The article is divided into two parts. First describes financial analysis and financial statements generally. Second, it presents a practical contribution of the horizontal and vertical financial statements analysis at the controlled businesses as financial management tools, which identify the financial position, market behaviour, correlations between the net profit and the prohibitively cost and operating profit, the financial activities profit, the income tax etc.Business, which the analysed firm operates in asks a provable claim on the high value of fixed assets. The capital composition of the firm is call to typify for the state-owned enterprise that was transformed to private joint-stock companies. Analysis is specially pleading for the needs considering the price of the borrowed capital in the capital structure rating. Fault factor ø value talks about needs for the cost regulation. Stair-step conception used for counting of the net profit in the accountant period indicates the financial profit, alternatively loss, as the distinguished pre-tax profit element. Picture about firms financial results can be completed with the information about the income tax value. Form of financial analyses presented in the article entablature the accents on the necessity to compare several accounting period and on the necessity of complex understanding of statements accounting slide en bloc.Financial analyse makes the decision makers possible to screen potential partners before the cooperation starts. On the other side, it makes a possibility to influence the production process, sales and financial management during the accounting period with a view to succeed in chartered accountant slide that attributes the financial index. This guarantees an excellent valuation from the outfitter, bank and another customer to the firm.
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spelling doaj.art-744d61982b004a249b4084c75459d20c2022-12-22T02:49:33ZengTechnical University of KosiceActa Montanistica Slovaca1335-17882001-12-016special issue 1112119Financial analysis as a financial management instrumentStehlíková BeátaThe financial market is one of the elements of the market-oriented economy. The financial analysis is a fundamental element of the financial controlling business. The purpose of this article is to inform briefly about horizontal and vertical financial statements analysis as the source of competitive advantage of the firm. The article is divided into two parts. First describes financial analysis and financial statements generally. Second, it presents a practical contribution of the horizontal and vertical financial statements analysis at the controlled businesses as financial management tools, which identify the financial position, market behaviour, correlations between the net profit and the prohibitively cost and operating profit, the financial activities profit, the income tax etc.Business, which the analysed firm operates in asks a provable claim on the high value of fixed assets. The capital composition of the firm is call to typify for the state-owned enterprise that was transformed to private joint-stock companies. Analysis is specially pleading for the needs considering the price of the borrowed capital in the capital structure rating. Fault factor ø value talks about needs for the cost regulation. Stair-step conception used for counting of the net profit in the accountant period indicates the financial profit, alternatively loss, as the distinguished pre-tax profit element. Picture about firms financial results can be completed with the information about the income tax value. Form of financial analyses presented in the article entablature the accents on the necessity to compare several accounting period and on the necessity of complex understanding of statements accounting slide en bloc.Financial analyse makes the decision makers possible to screen potential partners before the cooperation starts. On the other side, it makes a possibility to influence the production process, sales and financial management during the accounting period with a view to succeed in chartered accountant slide that attributes the financial index. This guarantees an excellent valuation from the outfitter, bank and another customer to the firm.http://actamont.tuke.sk/pdf/2001/n5/24stehlikova.pdffinancial managementfinancial statementsfinancial analysiseconomic resultsassetscapital structureand costs
spellingShingle Stehlíková Beáta
Financial analysis as a financial management instrument
Acta Montanistica Slovaca
financial management
financial statements
financial analysis
economic results
assets
capital structure
and costs
title Financial analysis as a financial management instrument
title_full Financial analysis as a financial management instrument
title_fullStr Financial analysis as a financial management instrument
title_full_unstemmed Financial analysis as a financial management instrument
title_short Financial analysis as a financial management instrument
title_sort financial analysis as a financial management instrument
topic financial management
financial statements
financial analysis
economic results
assets
capital structure
and costs
url http://actamont.tuke.sk/pdf/2001/n5/24stehlikova.pdf
work_keys_str_mv AT stehlikovabeata financialanalysisasafinancialmanagementinstrument