financial analysis
Evaluating fiscal data
Financial analysis is the evaluation of a business, project, or investment to assess its performance, stability, and profitability.
Analysts examine financial statements, ratios, and trends to guide decisions about lending, investing, or managing: The financial analysis revealed the company was overleveraged.
The term covers everything from a bank reviewing a loan application to an investor scrutinizing quarterly earnings.
Assets-liabilities-equity report
- profit and lossNet financial results
- cash flowMoney entering and exiting
- income statementPeriodic profit-loss report
- liquidityConvertibility to cash
solvency · leverage · forecasting · budgeting · valuation · due diligence · debt · equity
Ownership stakes in corporations
- bondsTies that unite
- stocksOwnership stakes or inventory
- asset allocationDistributing investments strategically
- risk assessmentEvaluating likelihood of harm
valuation · return on investment · capital gains · dividends · market trends · wealth management · hedge funds · venture capital
Sustained price level increase
- deflationSustained decrease in prices
- fiscal policyState spending and taxation
- monetary policyCentral bank economic controls
- recessionProlonged economic decline
economic indicators · unemployment · trade deficit · interest rates · central bank · economic forecasting · consumer confidence · purchasing power
balance sheet
Assets-liabilities-equity report
- profit and lossNet financial results
- cash flowMoney entering and exiting
- income statementPeriodic profit-loss report
liquidity · solvency · leverage · forecasting · budgeting · valuation · due diligence · debt · equity · revenue
equities
Ownership stakes in corporations
- bondsTies that unite
- stocksOwnership stakes or inventory
- asset allocationDistributing investments strategically
risk assessment · valuation · return on investment · capital gains · dividends · market trends · wealth management · hedge funds · venture capital · mutual funds
inflation
Sustained price level increase
- deflationSustained decrease in prices
- fiscal policyState spending and taxation
- monetary policyCentral bank economic controls
recession · economic indicators · unemployment · trade deficit · interest rates · central bank · economic forecasting · consumer confidence · purchasing power · sovereign debt
- analysisevaluate, examine, assess, interpret, compare
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- business accountingaccounts payable, accountant, accounts receivable, accounts, accrual
- knowledge workwriting, research, teaching, editing, coding
- financebank, CFO, banks, controller, treasurer
- corporate financecost of capital, investment, capital markets, NPV, shareholder
financial analysisgut instinct
Immediate unreasoned knowing
intuition · gut feeling · hunch · impulse · whim
financial analysiswild guess
Uninformed speculation attempt
rough estimate · ballpark figure · casual observation · anecdotal evidence · hearsay
finance, analysis, analyze, analyst, finances, financial, financing, analyzed, financed