METHODS FOR FINANCIAL ANALYSIS OF ENTERPRISES

Abstract

The financial condition of an enterprise is the most important indicator of its successful operation and performance, which is an essential element in making managerial decisions by the heads of enterprises, as well as for contractors when making decisions on cooperation. Financial analysis is intended to simplify the data contained in the financial statements published by companies and institutions in order to determine the current or future status of the company. It is also used to determine the best available investment opportunities that investors are looking for in a company. Financial analysis guides the decisions made by senior management regarding improvements to be made and influences the decisions of other parties that deal with the company, including suppliers and creditors.[1]