Accounts Analysis (2) — Assets, Operations and Financial

Abstract

The analysis of profitability and growth we considered in the last chapter helps us to gain an appreciation of where the company stands in terms of its overall performance, since the measures we discussed are all common indicators of commercial success. It is, however, important to probe beneath the surface to see if there is any sign of weakness which may affect the future success of the firm and also to be able to identify the factors which have influenced the company in the past.