Page 8 - MAC4861_2 Finance class slides part 2 (UNISA) - 1. 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

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