Finantsanalüüsiks

Finantsanalüüsiks, meaning financial analysis in Estonian, is the process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability. It involves assessing the financial health and viability of a company or investment, often for decision-making purposes. This analysis utilizes various financial statements, such as the balance sheet, income statement, and cash flow statement, along with other relevant data.

The primary goals of finantsanalüüsiks include assessing profitability, liquidity, solvency, and operational efficiency. Investors use it to decide whether to buy, sell, or hold securities. Lenders employ it to gauge the risk associated with extending credit. Management utilizes it for strategic planning, performance evaluation, and identifying areas for improvement. Different types of financial analysis exist, including horizontal analysis (trend analysis), vertical analysis (common-size analysis), ratio analysis, and cash flow analysis. Each method provides a different perspective on the financial data.

Key metrics and ratios derived from finantsanalüüsiks can indicate trends, potential risks, and opportunities. For instance, profitability ratios like the profit margin show how effectively a company converts revenue into profit. Liquidity ratios, such as the current ratio, assess a company's ability to meet its short-term obligations. Solvency ratios, like the debt-to-equity ratio, measure a company's long-term financial stability. Ultimately, finantsanalüüsiks provides a structured approach to understanding and interpreting financial information, enabling informed decision-making in various economic contexts.