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2101103010048
FSA Journal Resume

FINANCIAL ANALYSTS

This journal discusses the subject of financial analysis and its importance in assessing the
financial condition of a company. The primary focus of financial analysis is on the company's
financial statements, including the balance sheet, income statement, cash flow statement,
statement of changes in equity, and notes to the financial statements. The purpose of financial
analysis is to evaluate the company's current financial condition, forecast future financial
condition, identify available sources of funds, and assess the company's position on the capital
market.

Financial analysis can be categorized into various types, such as analysis of funds and sources of
funds, liquidity analysis, analysis of expenditures and revenues, and analysis of the company's
business performance. Additionally, financial analysis can extend beyond the mandatory
financial statements to include other segments of the company's annual report that are important
for making informed business and investment decisions.

The analysis of a company's financial condition involves assessing its assets, sources of
financing, additional financing, resources needed to maintain economic potential, and activities
to confirm its operations. Key indicators examined in financial analysis include return on
investment, profit from sales, net profit margin, current ratio, solvency, liquidity, financial
stability, and asset turnover.

Financial analysis is an essential tool for decision-making related to business management and
investment. It should consider general principles such as productivity, economy, and profitability,
as well as special principles like liquidity, stability, and security. Internal and external factors,
financing decisions, and other aspects also need to be analyzed.

The process of financial analysis is conducted in two phases: preparation and analysis. The
preparation phase involves reviewing the audit conclusion and determining the appropriateness
of the analysis. The analysis phase includes examining the financial functions of the company
and evaluating its financial stability, liquidity, solvency, capital adequacy, financial situation,
profitability, and risk of financial results.

The term "analysis" originates from the Greek word "analysis," which means breaking down the
whole into its parts. Financial analysis involves the decomposition of financial data and the
assessment of economic effects and efficiency. Descriptive and research methods are employed
to present quantitative and qualitative characteristics, explore relationships, correlations, laws,
and tendencies.
During financial analysis, static and dynamic analysis of the balance sheet is performed, along
with quantitative calculations of various indicators and ratios. These results are then qualitatively
assessed, described, and compared with similar indicators of other companies. Financial analysis
techniques have been developed and refined over time, and they play a vital role in modern
financial management.

Financial analysis is crucial for experts such as auditors and appraisers, as well as for assessing
the creditworthiness of a company. The balance sheet is considered a fundamental method and
instrument for complex business analysis. The economic report and calculation analysis provide
an overall evaluation of the company's economic activity and financial condition.

To conduct financial analysis, various criteria can be considered, such as users, subject of
analysis, observation time, method of data preparation, and analysis instruments. Financial
institutions, particularly banks, rely on financial analysis to evaluate lending decisions and
determine the creditworthiness of organizations. Therefore, financial analysis requires access to
relevant financial information, including bookkeeping records and reports from financial
authorities.

In conclusion, financial analysis is a comprehensive process of assessing a company's financial

condition and results. It involves analyzing financial statements, calculating indicators, and
evaluating various aspects of the company's operations to inform decision-making. Financial
analysis techniques and tools are essential for understanding and managing a company's financial
performance.