Contents
Financial Statement
Literature Review on Financial Statement Analysis
In the Encyclopedia of Public Administration and Public Policy, [1] Martin Ives offers the following summary about the topic of Financial Statement Analysis: Financial statement analysis allows the analyst to assess an entity's liquidity and short-term financial position, operating results, and longer-term financial flexibility. The resulting assessment helps provide governments and oversight bodies with early warning of deteriorating financial position. It also provides credit-rating agencies with data on the likelihood of the entity's ability to repay its short- and long-term obligations in a timely manner. Financial statement analysis is accomplished primarily by converting financial statement data elements to ratios and reaching conclusions by assessing the levels and trends of the ratios against a frame of reference. Common ratios include the quick ratio, budgetary cushion, operating margin, and debt service coverage.
Resources
Notes and References
- Entry about Financial Statement Analysis in the Encyclopedia of Public Administration and Public Policy (2015, Routledge, Oxford, United Kingdom)
See Also
Further Reading
- Global Encyclopedia of Public Administration, Public Policy, and Governance (2018, Springer International Publishing, Germany)
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