Page 8 - FINANCE PART 2 - 7. Analysis And Interpretation Of Financial And Non-financial Information

Analysis And Interpretation Of Financial And Non-financial Information

Financial analysis and interpretation

• Financial analysis and interpretation require a

multitude of skills based on a sound working

knowledge of the various ratios and other calculations.

• This will require the following:

• memorisation of the various ratios / other calculations – per

area of analysis (you have to know these per area as they will

NOT be provided in the tests or examinations)

• a proper working knowledge and understanding of what is

meant by each ratio / other calculations, especially when

compared to a benchmark such as the same ratio /

calculation for an earlier year, a similar company, or industry

• interrogation of your knowledge of the aforementioned

areas, in order to interpret and conclude upon your analysis

8