Objective Of Comparative Analysis Of Banks
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 also gives us a practical knowledge of the accounting subject. This research seeks to investigate and constructively contribute to help :
* The institution in finding out the areas of …show more content…
The research study is intended to study the various lending’s and borrowing’s the institution has done throughout the financial period, assets acquired during the period, growth in investor ratio etc. Comparative analysis is the comparison of various financial year statements and analyzing the changes the institution has gone through this period and to identify its weakness and strength, i.e. To compare the balance sheet, profit and loss accounts etc.To give the institution suggestions on how to gain investors interest and to overcome its weakness and avoid such weaknesses in the near future.
1. Financial statement :
A financial statement or financial report is a formal record of the financial activities of a business, person, or other entity. In British English including United Kingdom company law a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants.
2. Financial statement analysis :
Financial statement analysis the process of understanding the risk and profitability of a firm business, sub-business or project, through analysis of reported financial information, particularly annual and quarterly