Financial Analysis
Chapter from the book:
Kılıç,
Y.
&
Buğan,
M.
F.
&
Bayrakdaroğlu,
A.
(eds.)
2023.
Financial Analysis Applications in Borsa Istanbul: Sector-Based Reviews I.
Synopsis
Financial analysis is highly significant for evaluating and interpreting a company's financial condition and performance in-depth, providing insights into the company's financial health and future. In this section, we have addressed the objectives, importance, and financial analysis techniques. Within this scope, we briefly introduced vertical analysis, horizontal analysis, and trend analysis in theory and delved into ratio analysis in detail. Under the title of ratio analysis, we have explored the most used liquidity, activity, leverage, profitability, and stock performance ratios, along with calculation methods and interpretations in practice. The chapter concludes by highlighting the essential considerations to consider when conducting financial analysis.