PERSPECTIVES OF ANALYSIS OF THE STATE OF THE COMPANY THROUGH HORIZONTAL AND VERTICAL ANALYSIS FOR THE PURPOSE OF FUTURE PREDICTIONS
DOI:
https://doi.org/10.35120/sciencej0402127sKeywords:
financial analysis, horizontal analysis, vertical analysis, future of the companyAbstract
To stay "in touch" with their strengths and weaknesses, business systems should frequently update their procedures for analysis and comparison, as well as create new goals and activities. This will help them to take advantage of opportunities, minimize risks and make informed decisions in future forecasts. Every company is affected by different elements that affect financial policy research and have an impact on business results. Therefore, caution is needed when building financial policy tools and making financial decisions. However, while being overly cautious could reduce corporate effectiveness by preventing risk, being reckless can threaten not only a company's survival but also its effectiveness. With the help of comprehensive and accurate financial reports and their in-depth analysis, managers, staff, owners, investors and other stakeholders can learn how the business is doing, predict future performance and make necessary adjustments. Financial analysis of business is necessary for the proper management of the company's financial policy because it serves as a basis for decision-making. Analysts conduct various analyzes of financial statements to assess a company's financial status and future growth prospects. Among other things, we will try to determine the viewpoints of assessing the current status of the company in order to predict its future through vertical and horizontal analysis.
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