Balance sheet analysis refers to the examination and evaluation of a company's financial position based on its balance sheet and other financial reports. The goal is to gain insights into the financial health, performance, and stability of a company.
Typical Functions of Software in "Balance sheet analysis":
Financial Ratio Calculation: Automated calculation of financial ratios such as liquidity ratios, profitability ratios, and leverage ratios.
Comparative Analysis: Comparison of the current balance sheet with prior year figures or industry benchmarks to identify trends and deviations.
Graphical Representation: Visualization of balance sheet data through graphs and charts for better understanding and clarity.
Ratio Interpretation: Interpretation of calculated ratios and derivation of recommendations for management.
Scenario Analysis: Simulation of various scenarios and their impact on the company's financial position.
Reporting: Generation of detailed reports and analyses on the financial situation and performance of the company.
Forecasting: Forecasting future developments based on historical data and current trends.
Compliance: Ensuring compliance with legal and regulatory requirements in the preparation and analysis of financial reports.