Financial statement analysis is the process of evaluating a company's financial statements—like the income statement,

balance sheet, and cash flow statement—to assess its performance, financial health, and future prospects. This analysis
helps investors and stakeholders make informed decisions by delving into key metrics and ratios.

Ang financial statement analysis ay ang pagsusuri ng mga financial statement ng isang kumpanya, tulad ng income
statement, balance sheet, at cash flow statement. Layunin nito na suriin ang performance at financial health ng
kumpanya upang matulungan ang mga mamumuhunan at iba pang stakeholder na gumawa ng matalinong desisyon.

Example: An example of financial statement analysis is comparing a company’s revenue growth over several years to
industry benchmarks. This helps assess how well the company is performing relative to its competitors. Additionally,
analyzing trends in net profit margins can provide insights into operational efficiency and cost management. Would you
like to explore a specific aspect further?

Isang halimbawa ng financial statement analysis ay ang paggamit ng ratio analysis, tulad ng pagkalkula ng current ratio
upang suriin ang kakayahan ng kumpanya na bayaran ang mga short-term liabilities. Maaari rin itong isama ang
pagsusuri ng gross profit margin upang makita ang profitability ng operasyon. Gusto mo bang talakayin ang ibang
halimbawa o technique?

Common tools and techniques used in financial statement analysis

Here are some common tools and techniques used in financial statement analysis:

1. **Ratio Analysis**: This includes calculating various financial ratios to assess liquidity, profitability, efficiency, and
leverage, such as:

- **Current Ratio**: Measures short-term liquidity.

- **Debt-to-Equity Ratio**: Assesses financial leverage.

- **Return on Equity (ROE)**: Evaluates profitability relative to shareholder equity.

2. **Trend Analysis**: Examining financial statements over multiple periods to identify patterns and trends in revenues,
expenses, and profits.

3. **Common Size Analysis**: Expressing each line item in the financial statements as a percentage of a base figure
(e.g., total revenue for the income statement, total assets for the balance sheet) to facilitate comparisons.

4. **Vertical and Horizontal Analysis**:

- **Vertical Analysis**: Analyzing each item as a percentage of a total within the same period.

- **Horizontal Analysis**: Comparing line items over multiple periods to identify growth or decline.

5. **Cash Flow Analysis**: Reviewing the cash flow statement to assess cash generation, spending, and the company’s
ability to fund operations and growth.

6. **Benchmarking**: Comparing the company’s financial ratios and performance metrics against industry standards or
key competitors.

7. **SWOT Analysis**: Evaluating the company’s strengths, weaknesses, opportunities, and threats based on financial
performance and external factors.

These tools and techniques provide a comprehensive view of a company's financial health and performance. Would you
like more details on any specific technique?

Narito ang mga karaniwang tools at techniques na ginagamit sa financial statement analysis:

1. **Ratio Analysis**: Pagsusuri ng mga financial ratios tulad ng:

- **Current Ratio**: Sukat ng kakayahang bayaran ang mga short-term na utang.

- **Debt-to-Equity Ratio**: Tinataya ang financial leverage ng kumpanya.

- **Return on Equity (ROE)**: Pagsusuri ng kita kumpara sa equity ng mga shareholders.

2. **Trend Analysis**: Pagsusuri ng financial statements sa loob ng ilang taon upang makita ang mga pattern o trend sa
kita, gastos, at kita.

3. **Common Size Analysis**: Pagpapahayag ng bawat item sa financial statements bilang porsyento ng isang base
figure, tulad ng kabuuang kita o kabuuang assets, upang madaling makumpara.
4. **Vertical and Horizontal Analysis**:

- **Vertical Analysis**: Pagsusuri ng bawat item bilang porsyento ng kabuuan sa isang partikular na taon.

- **Horizontal Analysis**: Paghahambing ng mga item sa loob ng maraming taon upang makita ang paglago o
pagbaba.

5. **Cash Flow Analysis**: Pagsusuri ng cash flow statement upang makita ang kakayahan ng kumpanya sa pagbuo at
paggastos ng cash.

6. **Benchmarking**: Paghahambing ng financial ratios at performance metrics ng kumpanya laban sa mga industry
standards o mga pangunahing kakumpitensya.

7. **SWOT Analysis**: Pagsusuri ng lakas, kahinaan, oportunidad, at banta batay sa financial performance at mga
panlabas na salik.

Ang mga tools at techniques na ito ay nagbibigay ng komprehensibong pagtingin sa financial health at performance ng
isang kumpanya. Mayroon ka bang nais pang pag-usapan o detalye tungkol sa isang partikular na technique?

Comparative analysis is a financial evaluation technique that involves comparing a company's financial data against that
of other companies or against its own historical performance over different periods. This method helps identify trends,
growth patterns, and changes in financial health by placing data side by side.

Key Types of Comparative Analysis:

1. Year-over-Year Comparison: Evaluates financial performance by comparing metrics from one year to another
to assess growth or decline.
2. Industry Comparison: Compares a company's key financial ratios and metrics to those of its competitors or
industry averages.
3. Common-Size Analysis: Expresses each item in financial statements as a percentage of a base figure, facilitating
easy comparisons.

Importance:

 It enables stakeholders to make informed decisions by providing a clear context for financial performance,
helping to identify strengths and weaknesses.

Ang comparative analysis ay isang teknik sa pagsusuri ng financial statements na naglalayong ikumpara ang financial
data ng isang kumpanya sa iba pang mga kumpanya o sa sarili nitong performance sa iba't ibang panahon. Sa
pamamagitan ng paglalagay ng mga datos na magkakatabi, mas madaling makita ang mga trend, paglago, at pagbabago
sa financial performance.

Mga Uri ng Comparative Analysis:

1. **Year-over-Year Comparison**: Paghahambing ng financial performance sa nakaraang taon upang makita ang pag-
unlad o pagbagsak.

2. **Industry Comparison**: Paghahambing ng mga key financial metrics ng isang kumpanya laban sa mga
kakumpitensya o industry averages.

3. **Common-Size Analysis**: Pagpapahayag ng mga financial statement items bilang porsyento ng kabuuan, na
nagpapadali sa paghahambing sa iba pang kumpanya.

Kahalagahan:

- Tinutulungan nito ang mga mamumuhunan at analyst na gumawa ng matalinong desisyon sa pamamagitan ng
pagbibigay ng malinaw na konteksto sa financial performance ng kumpanya.

Horizontal analysis is a technique used to evaluate financial statements over multiple periods by comparing line items
year-over-year. This analysis highlights trends, growth rates, and patterns in revenues, expenses, and profits, allowing
stakeholders to assess how a company's financial performance has changed over time. It’s useful for identifying areas of
strength or concern. Would you like to delve into how to perform it?

Ang horizontal analysis ay isang teknik sa pagsusuri ng financial statements kung saan ikinukumpara ang mga line item
sa iba't ibang taon. Layunin nito na ipakita ang mga trend at pagbabago sa kita, gastos, at kita ng kumpanya sa paglipas
ng panahon. Sa ganitong paraan, mas madaling makita ang paglago o pagbaba ng performance ng kumpanya. Mahalaga
ito para sa mga stakeholder na gustong malaman ang mga aspeto ng financial health ng kumpanya. Gusto mo bang
malaman kung paano ito isinasagawa?

An example of horizontal analysis could involve comparing a company's revenue over three years:

- **Year 1**: $100,000

- **Year 2**: $120,000

- **Year 3**: $150,000

You would calculate the year-over-year change:

- **Year 1 to Year 2**: ($120,000 - $100,000) / $100,000 = 20% increase

- **Year 2 to Year 3**: ($150,000 - $120,000) / $120,000 = 25% increase

This analysis shows the company’s growth trend in revenue over the years. Would you like to explore more detailed
examples?

Vertical analysis is a financial analysis technique where each line item in a financial statement is expressed as a
percentage of a base figure within the same period. For example, in an income statement, each item might be presented
as a percentage of total revenue, while in a balance sheet, each asset item could be shown as a percentage of total
assets. This allows for easy comparison across periods and between companies, helping to assess relative sizes and
contributions of each component to the overall financial picture. Would you like to see a specific example?

Ang vertical analysis ay isang teknik sa pagsusuri ng financial statements kung saan ang bawat line item ay ipinapahayag
bilang porsyento ng isang base figure sa parehong panahon. Halimbawa, sa income statement, maaaring ipakita ang
bawat item bilang porsyento ng kabuuang kita, habang sa balance sheet, ang bawat asset item ay ipinapakita bilang
porsyento ng kabuuang assets. Sa ganitong paraan, mas madaling makita ang relasyon ng bawat bahagi sa kabuuan, na
nakakatulong sa pagsusuri ng financial performance. Gusto mo bang makita ang isang partikular na halimbawa?

An example of vertical analysis using an income statement might look like this:

**Income Statement:**

- Total Revenue: $200,000

- Cost of Goods Sold (COGS): $120,000

- Gross Profit: $80,000

- Operating Expenses: $50,000

- Net Income: $30,000

**Vertical Analysis:**

- COGS: $120,000 / $200,000 = 60%

- Gross Profit: $80,000 / $200,000 = 40%

- Operating Expenses: $50,000 / $200,000 = 25%

- Net Income: $30,000 / $200,000 = 15%

This shows each item as a percentage of total revenue, allowing for easy comparison of cost structure and profitability.
Would you like more details on another example?

Ang common-size statement ay isang financial statement kung saan ang bawat line item ay ipinapahayag bilang
porsyento ng isang base figure, na nagpapadali sa pagsusuri at paghahambing ng financial performance sa iba't ibang
kumpanya o panahon. Maaaring ilapat ang common-size statements sa income statement at balance sheet.

### Halimbawa:

**Common-Size Income Statement:**

- **Kabuuang Kita/Total Revenue**: 100%

- **Gastos ng Binebenta (COGS)/ Cost of Goods Sold (COGS)**: 60%

- **Gross Profit**: 40%

- **Gastos ng Operasyon/Operating Expenses**: 25%

- **Net Income**: 15%

**Common-Size Balance Sheet:**

- **Kabuuang Assets**: 100%

- **Cash**: 20%

- **Inventory**: 30%

- **Kabuuang Utang**: 40%

- **Equity**: 60%

### Benepisyo:

- Pinapadali ang paghahambing sa pagitan ng mga kumpanya ng iba't ibang laki.

- Tumutulong sa pagtukoy ng mga trend sa loob ng parehong kumpanya.

- Nagbibigay ng pananaw sa mga estruktura ng gastos at kalusugan ng pananalapi.

Financial ratios are quantitative measures used to assess a company's financial performance and health by comparing
various financial statement items. They provide insights into different aspects of a business, such as liquidity,
profitability, efficiency, and leverage.

### Common Types of Financial Ratios:

1. **Liquidity Ratios**: Measure a company's ability to meet short-term obligations.

- **Current Ratio**: Current Assets / Current Liabilities

- **Quick Ratio**: (Current Assets - Inventory) / Current Liabilities

2. **Profitability Ratios**: Assess a company's ability to generate profit.

- **Gross Profit Margin**: Gross Profit / Total Revenue

- **Net Profit Margin**: Net Income / Total Revenue

- **Return on Equity (ROE)**: Net Income / Shareholder's Equity

3. **Efficiency Ratios**: Evaluate how effectively a company utilizes its assets.

- **Inventory Turnover**: Cost of Goods Sold / Average Inventory

- **Asset Turnover**: Total Revenue / Average Total Assets

4. **Leverage Ratios**: Indicate the level of debt relative to equity or assets.

- **Debt-to-Equity Ratio**: Total Liabilities / Shareholder's Equity

- **Interest Coverage Ratio**: Earnings Before Interest and Taxes (EBIT) / Interest Expense

### Importance:

- Financial ratios help investors, analysts, and management make informed decisions by providing a clear picture of a
company's operational and financial health.

Ang financial ratios ay mga quantitative na sukat na ginagamit upang suriin ang financial performance at kalusugan ng
isang kumpanya sa pamamagitan ng paghahambing ng iba't ibang item sa financial statements. Nagbibigay ito ng
pananaw sa iba't ibang aspeto ng negosyo, tulad ng liquidity, profitability, efficiency, at leverage.

### Karaniwang Uri ng Financial Ratios:

1. **Liquidity Ratios**: Sukatin ang kakayahan ng kumpanya na bayaran ang mga short-term obligations.

- **Current Ratio**: Current Assets / Current Liabilities

- **Quick Ratio**: (Current Assets - Inventory) / Current Liabilities

2. **Profitability Ratios**: Tinataya ang kakayahan ng kumpanya na kumita.

- **Gross Profit Margin**: Gross Profit / Total Revenue

- **Net Profit Margin**: Net Income / Total Revenue

- **Return on Equity (ROE)**: Net Income / Shareholder's Equity

3. **Efficiency Ratios**: Sinasalamin kung gaano kaepektibo ang paggamit ng assets ng kumpanya.

- **Inventory Turnover**: Cost of Goods Sold / Average Inventory

- **Asset Turnover**: Total Revenue / Average Total Assets

4. **Leverage Ratios**: Tinutukoy ang antas ng utang kumpara sa equity o assets.

- **Debt-to-Equity Ratio**: Total Liabilities / Shareholder's Equity

- **Interest Coverage Ratio**: Earnings Before Interest and Taxes (EBIT) / Interest Expense

### Kahalagahan:

Ang financial ratios ay tumutulong sa mga mamumuhunan, analyst, at pamunuan na gumawa ng matalinong desisyon sa
pamamagitan ng pagbibigay ng malinaw na larawan ng operasyon at kalusugan ng pananalapi ng isang kumpanya.
Mayroon ka bang partikular na ratio na nais pag-usapan?

Ratio analysis is a quantitative method used to evaluate a company's financial performance by analyzing various ratios
derived from its financial statements. These ratios provide insights into different aspects of a business, such as its
liquidity, profitability, efficiency, and leverage.

Key Types of Ratios:

1. **Liquidity Ratios**: Assess a company's ability to meet short-term obligations.

- **Current Ratio**: Current Assets / Current Liabilities

- **Quick Ratio**: (Current Assets - Inventory) / Current Liabilities

2. **Profitability Ratios**: Measure a company’s ability to generate profit relative to its revenue or assets.

- **Gross Profit Margin**: Gross Profit / Total Revenue

- **Net Profit Margin**: Net Income / Total Revenue

- **Return on Equity (ROE)**: Net Income / Shareholder's Equity

3. **Efficiency Ratios**: Evaluate how effectively a company uses its assets to generate revenue.

- **Inventory Turnover**: Cost of Goods Sold / Average Inventory

- **Asset Turnover**: Total Revenue / Average Total Assets

4. **Leverage Ratios**: Indicate the level of debt used to finance the company’s assets.

- **Debt-to-Equity Ratio**: Total Liabilities / Shareholder's Equity

- **Interest Coverage Ratio**: Earnings Before Interest and Taxes (EBIT) / Interest Expense

Importance:

- Ratio analysis helps investors, analysts, and management make informed decisions by providing a clearer
understanding of a company's operational efficiency, financial stability, and profitability.

Ang ratio analysis ay isang quantitative na metodo na ginagamit upang suriin ang financial performance ng isang
kumpanya sa pamamagitan ng pagsusuri ng iba't ibang ratios na nakuha mula sa mga financial statements nito. Ang mga
ratios na ito ay nagbibigay ng pananaw sa iba't ibang aspeto ng negosyo, tulad ng liquidity, profitability, efficiency, at
leverage.

Mga Pangunahing Uri ng Ratios:

1. Liquidity Ratios: Sukatin ang kakayahan ng kumpanya na bayaran ang mga short-term obligations.
o Current Ratio: Current Assets / Current Liabilities
o Quick Ratio: (Current Assets - Inventory) / Current Liabilities
2. Profitability Ratios: Tinataya ang kakayahan ng kumpanya na kumita.
o Gross Profit Margin: Gross Profit / Total Revenue
o Net Profit Margin: Net Income / Total Revenue
o Return on Equity (ROE): Net Income / Shareholder's Equity
3. Efficiency Ratios: Sinasalamin kung gaano kaepektibo ang paggamit ng assets ng kumpanya.
o Inventory Turnover: Cost of Goods Sold / Average Inventory
o Asset Turnover: Total Revenue / Average Total Assets
4. Leverage Ratios: Tinutukoy ang antas ng utang kumpara sa equity o assets.
o Debt-to-Equity Ratio: Total Liabilities / Shareholder's Equity
o Interest Coverage Ratio: Earnings Before Interest and Taxes (EBIT) / Interest Expense

Kahalagahan:

Ang ratio analysis ay tumutulong sa mga mamumuhunan, analyst, at pamunuan na gumawa ng matalinong desisyon sa
pamamagitan ng pagbibigay ng mas malinaw na pag-unawa sa operational efficiency, financial stability, at profitability ng
isang kumpanya. Mayroon ka bang partikular na ratio na nais pag-usapan?

Liquidity ratios are financial metrics used to assess a company's ability to meet its short-term obligations and manage its cash flow.
These ratios help stakeholders understand how easily a company can convert its assets into cash to cover liabilities.

Ang liquidity ratios ay mga financial metric na ginagamit upang suriin ang kakayahan ng isang kumpanya na bayaran ang
mga short-term obligations nito at pamahalaan ang cash flow. Ang mga ratios na ito ay nagbibigay ng pananaw sa kung
gaano kadaling ma-convert ng kumpanya ang mga assets nito sa cash upang masagot ang mga utang.
### Key Liquidity Ratios:

1. **Current Ratio**:

- **Formula**: Current Assets / Current Liabilities

- **Interpretation**: A ratio greater than 1 indicates that the company has more current assets than current liabilities, suggesting
good short-term financial health.

Interpretasyon: Kung ang ratio ay higit sa 1, ito ay nagpapahiwatig na mas maraming current assets ang kumpanya kumpara sa
current liabilities, na nagmumungkahi ng magandang kalagayan sa pananalapi.

2. **Quick Ratio (Acid-Test Ratio)**:

- **Formula**: (Current Assets - Inventory) / Current Liabilities

- **Interpretation**: This ratio provides a more stringent measure of liquidity by excluding inventory, which may not be as easily
convertible to cash.

Interpretasyon: Ang ratio na ito ay nagbibigay ng mas mahigpit na sukatan ng liquidity sa pamamagitan ng pagbubukod ng
inventory, na hindi agad na ma-convert sa cash.
3. **Cash Ratio**:

- **Formula**: Cash and Cash Equivalents / Current Liabilities

- **Interpretation**: This ratio measures the ability of a company to pay off current liabilities with its cash and cash equivalents
alone.

Interpretasyon: Sinusukat nito ang kakayahan ng kumpanya na bayaran ang mga current liabilities gamit ang cash at cash
equivalents lamang.

### Importance:

- Liquidity ratios are crucial for creditors and investors, as they provide insight into the company’s short-term financial health and its
ability to respond to unexpected expenses or opportunities.

Mahalaga ang liquidity ratios para sa mga creditors at mamumuhunan dahil nagbibigay ito ng pananaw sa kakayahan ng
kumpanya na harapin ang mga hindi inaasahang gastusin o oportunidad.