analysis

Examples of analysis in the following topics:

• Qualitative and Quantitative Analysis

• Trend Analysis

  • In addition to using financial ratio analysis to compare one company with others in its peer group, ratio analysis is often used to compare the company's performance on certain measures over time.
  • Trend analysis can be performed in different ways in finance.
  • Fundamental analysis, on the other hand, relies not on sentiment measures (like technical analysis) but on financial statement analysis, often in the form of ratio analysis.
  • Creditors and company managers also use ratio analysis as a form of trend analysis.
  • Analyze the benefits and challenges of using trend analysis to evaluate a company

• Conducting a Situational Analysis

  • The situation analysis consists of several methods of analysis: The 5Cs, SWOT and Porter's five forces analyses.
  • Customer analysis can be vast and complicated.
  • An analysis on the climate is also known as the PEST analysis.
  • Porter five forces analysis is a framework for industry analysis and business strategy development.
  • A SWOT analysis can be a useful tool in conducting a situational analysis.

• Analyzing Data

  • In statistical applications, some people divide data analysis into descriptive statistics, exploratory data analysis (EDA), and confirmatory data analysis (CDA).
  • All are varieties of data analysis.
  • Types of data analysis outputs: heat map, bar plots, scatter plots.
  • Researchers can set up a debriefing meeting to review the analysis.
  • Summarize the characteristics of data preparation and methodology of data analysis

• Balance Sheet Analysis

  • Balance sheet analysis is process of understanding the risk and profitability of a firm through analysis of reported financial information.
  • Balance sheet analysis consists of 1) reformulating reported Balance sheet, 2) analysis and adjustments of measurement errors, and 3) financial ratio analysis on the basis of reformulated and adjusted Balance sheet.
  • Two types of ratio analysis are performed: 3.1) Analysis of risk and 3.2) analysis of profitability:
  • Risk analysis consists of liquidity and solvency analysis.
  • Cash flow analysis is also useful.

• Chemical Analysis

  • Two common techniques are precipitation analysis and colorimetric analysis.
  • These methods are called classical qualitative inorganic analysis.
  • This happens because cationic analysis is based on the solubility products of the ions.
  • Precipitation analysis can be used to determine the chemical makeup of the solution.
  • Describe the application of coordination compounds in the analysis of chemical composition.

• Using Financial Statements to Understand a Business

  • Two types of ratio analysis are analysis of risk and analysis of profitability:
  • Risk Analysis: Analysis of risk detects any underlying credit risks to the firm.
  • Risk analysis consists of liquidity and solvency analysis.
  • Profitability analysis: Analyses of profitability refer to the analysis of return on capital.
  • Explain how a company would use the financial statements to perform risk analysis and profitability analysis

• Interpreting Ratios and Other Sources of Company Information

  • Financial statement analysis, also known as financial analysis, is the process of understanding the risk and profitability of a company through the analysis of that company's reported financial information.
  • There are four methods for making these types of comparisons: vertical analysis, horizontal analysis, ratios, and trend percentages.
  • In a vertical analysis, each item is expressed as a percentage of a significant total.
  • This type of analysis is especially helpful in analyzing income statement data .
  • In vertical analysis each item is expressed as a percentage of a significant total.

• Sensitivity Analysis

  • Sensitivity analysis determines how much a change in an input will affect the output.
  • Sensitivity analysis is a statistical tool that determines how consequential deviations from the expected value occur.
  • Sensitivity analysis can be useful for a number of reasons, including:
  • The sensitivity analysis entails changing each variable and seeing how that changes the output .
  • Sensitivity analysis determines how much an output is expected to change due to changes in a variable or parameter.

• Scenario Analysis

  • Scenario analysis is a process of analyzing decisions by considering alternative possible outcomes.
  • Scenario analysis is a strategic process of analyzing decisions by considering alternative possible outcomes (sometimes called "alternative worlds").
  • For example, a firm might use scenario analysis to determine the net present value (NPV) of a potential investment under high and low inflation scenarios.
  • The purpose of scenario analysis is not to identify the exact conditions of each scenario; it just needs to approximate them to provide a plausible idea of what might happen.
  • This scenario analysis shows how changes in factors like yield and transport cost can affect profits.