Briefly describe what are the methods of financial statement analysis, each what

Generally speaking, there are four main methods of financial analysis:

1. Comparative analysis: is to illustrate the quantitative relationship between the financial information and the quantitative differences, to point the way for further analysis. This comparison can be made between actual and planned, between the current period and the previous period, or with other enterprises in the same industry;

2. Trend analysis: It is to reveal the changes in financial position and results of operations, as well as their causes and nature, to help predict the future. The data used for trend analysis can be either absolute values, ratios or percentage data;

3. Factor analysis: it is to analyze the extent of the impact of several relevant factors on a financial indicator, generally with the help of variance analysis methods;

4. Ratio analysis: it is to understand the financial condition and operating results of an enterprise through the analysis of financial ratios, often with the help of With the help of comparative analysis and trend analysis methods.