How to you perform analytics review of a financial statement ?

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Accepted Answer

Performing analytics review of a financial statement involves analyzing key financial ratios, trends, and variances to assess the financial health of a company.

Start by calculating key financial ratios such as liquidity, profitability, and solvency ratios.
Compare the current financial statement with previous periods to identify trends and changes.
Analyze variances between actual and budgeted figures to understand the reasons behind any discrepancies.
Look for any red flags or anomalies in the financial statement that may require further investigation.
Use financial analysis tools such as ratio analysis, trend analysis, and common-size analysis to gain insights into the company's financial performance.

How to you perform analytics review of a financial statement ?

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