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Essay text:
Financial statement analysis involves rearrangement of financial information, comparison, analysis and interpretation of that information.
Financial statement analysis can be external or internal; horizontal or vertical; and intra-firm or inter-firm.
Analysis done by the management to assess the financial health of the organization and its operational efficiency is called internal analysis. Analysis carried out by parties external to the organization such as investors, credit rating agencies, government agencies etc. is called external analysis. Horizontal analysis compares financial data over a number of years to analyze the trend...
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