ID: Daniela Gamez

C.I:27.753.332
PNF: ADMON Trimester II (Trajectory I) Section 03

Financial paragraph
The financial analysis is the study that is made of the accounting information, by
means of the use of indicators and financial reasons.
Accounting represents and reflects the economic and financial reality of the
company, so it is necessary to interpret and analyze this information in order to be
able to understand in depth the origin and behavior of the company's resources.
The accounting or financial information is of little use to us if we do not interpret it,
if we do not understand it, and that is where the need for financial analysis arises.
Each component of a financial statement has a meaning and in effect within the
accounting and financial structure of the company, an effect that must be identified
and, if possible, quantified Knowing why the company is in the situation that is
good or bad, is important to be able to project solutions or alternatives to face the
problems arisen, or to devise strategies aimed at taking advantage of the positive
aspects.
Without financial analysis is not possible you do a diagnosis of the current of the
company, and without it there will be no guideline to indicate a course to follow in
the future Many of the problems of the company can be anticipated by interpreting
the accounting information, because it reflects every negative or positive symptom
that the company presents to the extent that the economic facts are happening.
There are a large number of indicators and financial reasons that allow a complete
and exhaustive analysis of a company, Many of these indicators are not of greater
use applied individually or isolated, so it is necessary to resort to several of them in
order to make a complete study that covers all aspects and elements that form the
financial reality of every company.
The financial analysis is the one that allows the accounting to be useful when
making the decisions, since the accounting if it is not read properly, simply does
not say anything and less for a manager who knows little of accounting, then the
financial analysis is Essential for accounting to meet the most important objective
for which it was devised: to serve as a basis for decision-making.