Object Finance Analysis Forex

The analysis of the financial statements of the company, is part of a process of information whose fundamental objective is to provide data for decision-making. Users of this information are many and varied, from business managers interested in evaluating it, financial managers about the viability of new investments, new projects and what is the best way of financing to foreign banks on whether to grant credit or not to undertake such investments.

The professor of the Autonomous University of Mexico, Mr. Juan Antonio Martínez, in the Diploma in Finance provides:

“The financial analysis is a tool or technique that applies the financial manager for the historical evaluation of a public or private social agency. The method of technical analysis as applicable to the interpretation, shows the following order to separate and understand the numerical descriptors and integrate the contents of the financial statements.
From the above it follows that the Economic and Financial Analysis is used to diagnose the situation and internal perspective, which makes clear that the direction of the company may be making the decisions to correct the weak spots that may threaten their future, while that capitalizes on the strengths for the company to achieve its objectives. From an external perspective, are very useful for anyone interested in knowing the situation and expected development of the company, such as those listed below:

• Entities credit.
• Actions.
Store of purchase.
• Customers.
• Employees, works councils and trade unions.
• Auditor of Accounts.
• Advice.
• Analyst Financial.
• Administration public.
• Competitors.
• Inverter and prospective buyers of the company.

Through the Economic and Financial Analysis can be diagnosed with the company, which is the result of analysis of all relevant data and report the same weaknesses and strengths. For diagnosis have been useful to give the following circumstances:

• Must be based on the analysis of all relevant data.
• Must be on time.
• It has to be right.
• Must be immediately accompanied by appropriate remedial measures to address weaknesses and build on the strengths.

This diagnosis day to day business is a key tool for proper management. This helps to achieve those objectives could be considered the majority of businesses

1. Surviving: Continue running along the years, covering all the commitments.
2. Be profitable, generate profits to reward shareholders adequately and properly fund the necessary investments.
3. Grow: Increase sales, market share, profits and company value.

Objectives of the Economic and Financial Analysis.

Among the objectives to be taken into account in the Economic and Financial Analysis are:

• Assessing the results of the activity.
• To reveal the internal reserves in the enterprise.
• Achieve the increase in activity, while raising the quality of it.
• Increase the productivity of labor.
• Work efficiently represent means of fixed assets and inventories.
• Reduce the cost of services and achieve the planned efficiency.

Other important objectives of the analysis of economic activity fall below

• The search for internal reserves for further improvement work.
• The study of errors that occurred, in order to eliminate them in the future.
• The review of all information about the management aims of the work in the company.
• The impact of social organizations in improving the economic and financial activity of the company.

To complement the goals is an analysis of all financial and economic process, starting from the basic states for this analysis.

Basic State for Economic and Financial Analysis

The Economic and Financial Analysis is based on the use of information sources that provide data on past and present of a company, allowing making predictions about the future of it, this source of information are the Financial Statements.

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