Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment. The most common types of financial analysis are vertical analysis, horizontal analysis, leverage analysis, growth rates, profitability analysis, liquidity analysis, efficiency analysis, cash flow, rates of return, valuation analysis, scenario and sensitivity analysis, and variance analysis.

1. Types of Financial
Analysis
Prepared and Presented by:
Mohammad Rahmatullah
ID: 182006031

2. Content
 What/Why is Financial analysis
 Fundamental Analysis
 Technical Analysis
 Cycle analysis
 Inter Market analysis

3. What/Why is Financial analysis
• evaluate economic trends, set financial policy, build long-term
plans for business activity, and identify projects or companies for
investment
• And as a monitoring tool for managing the finances
• Using it to evaluate financial performance and business value
• Basically there are two types of financial analysis

4. Fundamental Analysis
• A method of assessing the intrinsic value of a security
• considers economic analysis, industry analysis and company
analysis all together.
• Includes historical data, publicly known information,
information that is not known publicly
• Fundamental analysis helps to find out Undervalued and over
valued shares
• But it is time consuming, long time process and not suitable
for quickly required decision.

5. Technical Analysis
• seeks to predict price movements by examining historical data
• analyzing statistical trends gathered from trading activity
• includes stocks, futures, commodities, fixed-income,
currencies, and other securities.
• focuses on the study of price and volume
• helps traders and investors navigate the gap between intrinsic
value and market price
• Neither Fundamental nor technical analysis can ensure 100
percent correct result

6. Cycle analysis
• map out the rises and falls in economic activity
• recognize symptoms of growth and recession as well as determine the
likelihood of economic shifts
Inter Market analysis
• method of analyzing markets by examining the correlations between different
asset classes
• Considers stocks, bonds, commodities, and currencies.

7. Thanks
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