Financial Statements are the summary of all the financial transactions made by the company. In Accounting we only consider the transactions whose value can be determined in money. There are mainly four types of financial statements. They are as follows
Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company's financial statements. We can do financial statement analysis through horizontal and vertical analysis and through ratio analysis.
Horizontal analysis; when a comparative study of many years financial statements of any business concern are analyzed then it is known as horizontal analysis .In this analysis the data are presented in the absolute manner by calculating percentage or ratios or by preparing common size statements. For calculating the % firstly difference is taken.Net Revenue has increased from 212 to 2013 by 4.97% whereas Cost of goods has increased by 5.18% which decreases the gross profit margin to 4.34%,