Organizations rely on financial statements to carry out important business decisions. The statements are typically compiled into a cohesive document, which allow managers to evaluate, based on various financial analysis methods. This process involves a comparison of ratio outcomes from the financial statements. Collectively, the ratios are used to execute financial analysis of business operations, to assess profitability and viability. This portion of the project requires you to apply financial analysis methods, choose the best method to evaluate financial outcomes for your case, and explain why this method should be used over other methods.
Submit a minimum 2-page report that:
- Defines and describes various financial analysis methods, such as vertical and horizontal analysis.
- Explains how and why each method would be used in an organization’s financial review process.
- Compares the similarities and differences among the methods.
- Using the financial statements for your case, examine how at least one of the methods can be used.
- Support your position with the actual ratio outcome(s).
- Explain WHY this method should be used over the others, based on case financial challenges.