Một số câu hỏi bằng tiếng anh và đáp án về Financial analysis

FINANCIAL ANALYSIS
1. What is financial analysis? How is it important?
 FA is a selection, evaluation and interpretation of financial data along

with other pertinent information, to assist investment and financial
decision- making
2. What are some sources of data used in F.A?
There are two main sources of data: primary source and secondary source.
 First primary source is data provided by the company itself in its

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financial statement & annual reports such as income statements, balance
sheets and cash from statements.
Secondary source includes: Market data, economic data and events.
Market data such as prices of the company shares/ products, can be found
in the financial press and electronic media. Economic data helps analysis
to understand the economic environment in which the company of
operates such as GDP, CPI, customers spending and so on. Events help to

explain the company’s present condition and future prospects. They show
what are happening currently such as developing new products/ acquiring
another company.
How are financial ratios classified?
Financial ratios are classified according to construction and important
aspects of company operation.
By construction, ratios can be classified as a coverage ratio, a return ratio,
a turnover ratio, or a component percentage.
The important aspects of company operation include a liquidity ratio, a
profitability ratio, an activity ratio, a financial leverage ratio, a
shareholder ratio, a return on investment ratio.
What is coverage ratio? Turnover ratio? Return ratio? Component
percentage? Liquidity ratio? Activity ratio? Profitability ratio?
Financial leverage ratio? Return on investment ratio? Share holder
ratio?
A coverage ratio is a measure of a company’s ability to satisfy particular
obligations.
A turnover ratio is a measure of the gross benefit, relative to the resources
expended.
A return ratio is a measure of the net benefit, relative to the resources
expended.
A component percentage is the ratio of a component of an item to the
item


 A liquidity ratio: provides information on a company’s ability to meet its
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short-term, immediate obligations.
An activity ratio: relates information on a company’s ability to manage its
resources (that is, its assets) efficiently.
A profitability ratio: provides information on the amount of income from
each dollar of sales.
A financial leverage ratio: provides information on the degree of a
company’s fixed financing obligations and its ability to satisfy these
financing obligations.
A return on investment ratio: provides information on the amount of
profit, relative to the assets employed to produce that profit.
A shareholder ratio: describes the company’s financial condition in terms
of amounts per share of stock.