DEFINITION & CLASSIFICATION OF FINANCIAL STATEMENT ANALYSIS - Accounts and Finance for Managers

According to Kennedy and Muller

“ The analysis and interpretation of financial statements are an attempt to determine the significance and meaning of financial statement data so that the forecast may be made of the prospects for future earnings, ability to pay interest and debt maturities and profitability and sound dividend policy”

Classification of Financial Statement Analysis

The entire financial statement analysis can be classified into various categories

  • Comparative financial statements
  • Common size financial statements
  • Trend percentages
  • Fund flow statements
  • Cash flow statements
  • Ratio analysis

financial statement analysis


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