FAR

 hindi agad icocompare yung ratio sa industry average, meron tinatawag na

Company limits

Industry average- is how the whole industry, the competitors and u performs. then i-
aaverage
* There are limitations sa company

Example:
Si competitor mo malaki investment niya sa P/E compare sayo na may limitation, bago
maging comparable sa industry average, kailangan ma-set mo muna yung limitaiton mo
as a company kasi hindi naman kapareho mo yung competitor mo.
Meron kang sarili mong standard sa company before u compare with industry average

Horizontal Analysis
 is analyzing the changes occured in a 2 financial statement period.
 like horizontal analysis of ur Income Statement
On Incone statement, u will analyze the amount of change from base year to
current year ( like 2020 to 2021 ganern)
U will just deduct (cuirrent year minus previous year) and then u can get the
percentage by ( dividing the amount of change divide the based year)
Kapag nakuha na icocopy na lang daw kasi nasa excel
* The change in ur sales from based year to current year, macocompute mo
kung ilang percent yung itinaas.
* SO ANG ANALYSIS IS INCREASE IN SALES BY 31.8%
* INCREASE IN COST OF SALES BY 14.5%
* Kapag mas malaki yung based year kaysa current year ang ilalagay sa
analysis is DECREASE
* Kapag mataas like yung expense kaysa sa based year INCREASE IN
OPERATING EXPENSE DUE TO (makikita mo yung due to usually sa NOTES,
kung ano yung composition ng operating mo)
* we need to analyze it , so that we analyze the riddle? we will see kung yung
expense is trending or it will be expense in the near future. If tataas pa
 * Kagaya nung sa interest expense , kapag lumaki possible na nangutang siya or
tumaas yugn rate (PWEDENG SABIHIN NA DUE TO RATE INCREASE BY.....) or (
DUE TO ADDITIONAL LOAN)

HORIZONTAL ANALYSIS BY BALANCE SHEET

 Same lang din para makuha yung amount change ( 2021 -2022)
 Kapag sobrang taas ng itinaas may DUE TO
 Increase in Marketable Securities by 122.6% DUE TO

KATULAD NG ..
 Increase of property ( DUE TO acquisition of new assets/new plant property)
 Increase in Intangible Assets ( DUE TO purchase of goodwill/ purchase of
company as a good will)

VERTICAL ANALYSIS
 common size analysis where u should have 100% basis. Then after may 100%
basis, iaanalyze mo each account to that base.
 Like sa INCOME STATEMENT , ang based account niya is Net Sales. So
paano makukuha ang 100%, divide Net sales/Net sales
 Para ma-copy mo isa-isa. Lalagyan mo ng dollar sign sa una at gitna (kasi
kapag hindi,mababago yung denominator mo/computation mo)
 Dapat kapag inadd mo yung Cost of Good Sold and Gross Margin total niya is
100% para malaman if tama.

BALANCE SHEET
 Ang 100% natin is TOTAL ASSET ( kapag sa asset)
 sa Liabiliies ang 100% is TOTAL LIABILITIES AND OE