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Financial Statement Analysis

Financial statement analysis is the process of analyzing a company’s financial statements for decision-making purposes. Here at Murchison Accounting Services, we provide these services so external stakeholders can use this information to understand the overall health of the organization and evaluate financial performance and business value. In addition, internal management can use this information as a monitoring tool for managing the finances.

Some Components of Financial Statement Analysis
  • Profitability Ratios
    • Breakeven point in sales
    • Contribution margin
    • Margin of safety
    • Return on net assets
  • Liquidity and Leverage Ratios
    • Cash coverage
    • Debt to equity
  • Activity Ratios
    • Accounts receivable turnover
    • Inventory turnover
    • Days sale outstanding
  • Period over Period Comparisons
    • Balance Sheet
    • Income Statement
    • Cash Flow
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