UNGUREANU, Mihai Aristotel; FRĂSINEANU, Corina; NEDELUT, Marinel; IOANĂŞ, Corina
May 2013
Metalurgia International;May2013, Vol. 18 Issue 5, p248
Academic Journal
The interpretation and evaluation of financial statement data require familiarity with the basic tools of financial statement analysis. The type of financial analysis that takes place depends on the particular interest that the creditor, stockholder, potential investor, manager and other. The management of a company is concerned about the composition of its capital structure and about the changes in earnings. The financial information has a direct influence on the type, amount, and cost of external financing that the company can obtain. A company's financial statements reflects its financial position at a moment in time and its work performance over a past period of time. The true value of the financial documents consists, however, of the fact that they can be used to predict the the company's future earnings and dividends that its shareholders can obtain. From an investor's point of view, predicting the future is the most important aspect of the financial analysis, while, from the management team's point of view, the financial statements analysis is useful both as a way to predict the future conditions and, more important as a starting point for planning the actions, that will influence the future actions.


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