Comparative Analysis Essay
1. INTRODUCTION 2. OBJECTIVE 3. SOURCES OF INFORMATION a) Primary Data b) Secondary Data 4. STATEMENT OF PROBLEM 5. SCOPE OF STUDY 6. LIMITATION
Based on the information furnished by the institution regarding their financial statements , the objectives of this study can clearly determined , the main objective of comparative analysis are as follows : * To determine the financial conditions and financial performance of the institution during the assessment year and relevant previous years .
* To analyze the institutions strength s and weaknesses
* To determine the institutions efficiency …show more content…
STATEMENT OF PROBLEM Financial statements are prepared primarily for decision making, they play a dominant role in setting the frame work of the financial decision for the financial year. But the information provided by the institution is not the complete transactional figures, but it contributes only a small part of the financial statements which are sufficient for a investor. The purpose of financial analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the institution with various tools of analysis before commenting upon the financial health or weakness of the institution.
SCOPE OF STUDY: A comparative statement is a well-analyzed and well-structured report of the institution’s financial conditions as compared to relevant previous year reports. Financial analysis is a SWOT analysis to the institution, wherein the institution can develop appropriate techniques and procedures to overcome their weakness in the near future. Financial analysis not only gives the institution knowledge about their area of excellence and deficiencies, but