Financial Statement

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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.


Notes and References

  1. 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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