What is the traditional financial analysis method?

In terms of basic methods, there are three typical basic methods of traditional financial report analysis: structural analysis, trend analysis and ratio analysis. Among them, the most commonly used method is ratio analysis, which refers to the evaluation of all aspects of enterprise management by using financial ratio indicators. Traditional analysis also pays attention to combining various basic analysis methods to obtain more dynamic and predictive results, such as combining structural analysis with trend analysis, or combining trend analysis with ratio analysis. With the change of accounting environment, the conflict between traditional analysis methods and the environment is intensifying, which promotes the continuous improvement of analysis methods, mainly reflected in the expansion of the analysis content of the original analysis methods, the improvement of methods and the application of new analysis methods. The content of traditional analysis method is the disclosure of traditional financial report, and the expansion of the latter will naturally expand the space of the former. The introduction and research of cash flow analysis is a typical product of this expansion process. In addition, while the ratio index used in traditional analysis methods is widely accepted, it also attracts the research interest of theoretical circles and practical users. It is also a promotion to traditional analysis to get more reasonable and useful analysis results by improving this index. In addition, in addition to the above analysis methods, professionals also use innovative analysis methods of advanced mathematics.