Methods Or Techniques Of Financial Statement Analysis

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Financial statement analysis can be performed by employing a number of methods or techniques. The following are the important methods or techniques of financial statement analysis.

1. Ratio Analysis
Ratio analysis is the analysis of the interrelationship between two financial figures.

2. Cash Flow Analysis
Cash flow analysis is the analysis of the change in the cash position during a period.

3. Comparative Financial Statements
Comparative financial statement is a analysis of financial statements of the company for two years or of the two companies of similar types.

4. Trend Analysis
Trend analysis is the analysis of the trend of the financial ratios of the company over the years.

The methods to be selected for the analysis depend upon the circumstances and the users' need. The user or the analyst should use appropriate methods to derive required information to fulfill their needs.

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Concept And Meaning Of Financial Statement Analysis
Objectives Of Financial Statement Analysis
Importance Of Financial Statement Analysis
Limitations Of Financial Statement Analysis
Parties Interested In Financial Statement Analysis


  1. there are totally 7 analysis but u have posted only 4 where are the other 3 analysis please even post that also

  2. Replies
    1. Rest three are Financial Ratios, Common Size Financial Statements and Funds Flow Statement