o Percentage Analysis

o Ratio Analysis
Ratio analysis is a widely used tool of financial analysis. The term ratio in it refers to the relationship expressed in mathematical terms between two individual figures or group of figures connected with ♣ each other in some logical manner and are selected from financial statements of the concern.
♣ The ratio analysis is based on the fact that a single accounting figure by itself may not communicate any meaningful information but when expressed as a relative to some other figure, it may definitely provide some significant information.
♣ The relationship between two or more accounting figures/groups is called a financial ratio.
♣ A financial ratio helps to express the relationship between two accounting figures in such a way that users can draw conclusions about the performance, strengths and weaknesses of a firm. Ratios look at the relationships between individual values and relate them to how a company has performed in the past, and might perform in the future.

o Income Statement Analysis
♣ The income statement is basically the first financial statement you will come across in an annual report or quarterly Securities And Exchange Commission (SEC) filing.
♣ It also contains the numbers most often discussed when a company announces its results – numbers such as revenue, earnings and earnings per share. Basically, the income statement shows how much money the company generated (revenue), how much it spent (expenses) and the difference between the two (profit) over a certain time period.
♣ When it comes to analyzing fundamentals, the income statement lets investors know how well the company’s business is performing – or, basically, whether or not the company is making money.
♣ Generally speaking, companies ought to be able to bring in more money than they spend or they don’t stay in business for long. Those companies with low expenses relative to revenue – or high profits relative to revenue – signal strong fundamentals to investors.
♣ You can gain valuable insights about a company by examining its income statement.
♣ Increasing sales offers the first sign of strong fundamentals. Rising margins indicate increasing efficiency and profitability. It’s also a good idea to determine whether the company is performing in line with industry peers and competitors.
♣ Look for significant changes in revenues, costs of goods sold and SG&A to get a sense of the company’s profit fundamentals.

o Balance Sheet Analysis
♣ Investors often overlook the balance sheet. Assets and liabilities aren\’t nearly as attractive as revenue and earnings. While earnings are important, they don\’t tell the whole story. The balance sheet highlight