Analysis Of Financial Analysis

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Method for Treating the FT and Solving the Problem. Techniques and Key Methods of Financial Analysis. In my Diploma Thesis I pursue to analyze the financial stability and performance of “Gazprom”. The assessment will be done by means of elaboration of the financial analysis. This analysis requires the presence of specialized skills, such as understanding of accounting methods, analytical techniques and different measuring tools. Financial Analysis and mathematical surveys are key concepts of a specialized work that are necessary for company’s assessment. They include searching, collecting data and its subsequent research by means of different types of calculations. These methods are highly important when there is a need to decide whether company operates well or not, how company operated in past and what we should expect in the future. Accounting is the dominating science here, as it studies collection and transmission of financial information. Basic steps of accounting information system are: information identification, its recording, data analysis and information reporting. Depending on the objective of analysis appropriate methods and techniques should be selected. There are several primary objectives in my analysis of Gazprom’s performance. They are: identification of financial position, revelation of the changes in the financial status for certain time periods and discovering of the main grounds for these changes. Basically, an evaluation of a company’s performance portrays not only what happened but also why it happened. Evaluation can be compared to a relevant benchmark, historical performance, a competitor’s performance, or market expectations. Proposal. Financial Analysis Steps. Term “analysis” comes from Greek la... ... middle of paper ... ...he operations of an enterprise. There are such cases, when evaluating a company’s past performance can provide analyst with a basis for forward – looking estimations. An assessment of a company’s financial position and its history may persuade the analyst to make future predictions. These predictions or projections can be based on the continuance of past trends. But of course, in the case of acquisition, starting company phase, or when a company operates in a volatile industry, evaluation of past performance plays less relevant role for setting any estimations. Projections of future financial performance over several periods are needed in assessment models that estimate the value of a company (or its equity) by discounting future cash flows. The value of a company developed in this way may then be compared with the market price as a basis for investment decisions.
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