Defines and describes various financial analysis methods such as vertical and horizontal analysis
Financial Analysis Methods
Organizations rely on financial statements to carry out important business decisions. The statements are typically compiled into a cohesive document, which allow managers to evaluate, based on various financial analysis methods. This process involves a comparison of ratio outcomes from the financial statements. Collectively, the ratios are used to execute financial analysis of business operations, to assess profitability and viability. This portion of the project requires you to apply financial analysis methods, choose the best method to evaluate financial outcomes for your case (my case study is attached Interim Chief Financial Officer Case Study:
Trinity Mother Frances Health System: Tyler, Texas.) and explain why this method should be used over other methods.
Submit a minimum 2-page APA report that:
Defines and describes various financial analysis methods, such as vertical and horizontal analysis.
Explains how and why each method would be used in an organization’s financial review process.
Compares the similarities and differences among the methods.
Using the financial statements (see attached; you’re only using the financial statement information from Johnson and Johnson). My case is actually Interim Chief Financial Officer Case Study:
Trinity Mother Frances Health System: Tyler, Texas. So be sure the text references this and not Johnson and Johnson.
Examine how at least one of the methods can be used.
Support your position with the actual ratio outcome(s).
Explain WHY this method should be used over the others, based on case financial challenges.
Investors and company owners put their money in any company with an aim of maximizing their wealth. There is the need for every company to prepare financial statements that will show the performance of a business in any fiscal year. The major statements include the income statement, the balance sheet……………….