Analysis of Financial Statements

Financial statements are tools for assessing businesses' financial health and performance across various industries. These statements, including the …

The analysis of financial statements involves examining and interpreting a company's financial data to assess its performance and make informed …

A balance sheet is a financial statement that lists all the assets and liabilities of a business at a specific point in time.  It comprises assets, …

A fixed asset is a long-term resource that a company owns and uses to generate income. They are crucial components on a company's balance sheet, …

Depreciation is an accounting method used to allocate the cost of physical assets over their useful lives. Depreciation on assets occurs when they …

The Straight-Line Method of depreciation assumes an asset loses value at a constant rate over its useful life until it reaches its scrap value, also known …

The written-down value method, also known as the declining balance method,  is a method of depreciation that results in higher depreciation charges …

The unit of production method for depreciation is where the depreciation expense is based on the asset's actual usage or production level rather than …

Current assets refer to all the assets in a company expected to be sold or consumed through standard business operations within one year. Businesses …

Non-current liabilities are long-term liabilities, which are financial obligations a company is due to settle over a period exceeding one year. These …

Current liabilities represent obligations due within twelve months and are settled using current assets. Current liabilities include accounts payable, …

Shareholders' equity is a financial metric representing the amount returned to shareholders if the company is liquidated and all debts are paid. It is …

An income statement is a financial document that reports a company's ability to generate profit over a specific accounting period. The income …

Income statement expenses are the costs incurred by a business in earning revenue for a specific accounting period. These expenses are broadly categorized …

Income on an income statement represents the revenues and gains a company earns in a specific accounting period. Revenues primarily come from core …

A cash flow statement provides a detailed account of the cash inflows and outflows over a specific period. The statement is essential for understanding a …

Operating activities in a cash flow statement represent the cash inflows and outflows directly related to the regular business operations of a company. …

Financing activities in a cash flow statement are managing cash related to raising funds and returning value to its shareholders for its long-term …

Investing activities in a cash flow statement focus on a company's strategies for allocating resources in its business infrastructure by acquiring …

Financial statements are written records that provide stakeholders with information on an organization's business activities and financial …

Financial statement analysis involves examining a company's financial reports to understand its financial health. By analyzing Salt Corporation's …