SVB 7 Types of Financial Analysis

What is the primary purpose of financial analysis for companies?

• To evaluate financial stability and future

• To create marketing strategies

• To hire new employees

• To expand office space

Which type of financial analysis involves comparing financial statement figures over a certain period to spot trends?

• Vertical analysis

• Horizontal analysis

• Liquidity analysis

• Valuation analysis

In a profitability analysis, which of the following is NOT a margin ratio?

• Gross profit margin

• Operating profit margin

• Return on investment

• Net profit margin

What does variance analysis help a company determine?

• The difference between budgeted and actual costs

• The company's market share

• The effectiveness of marketing campaigns

• The number of new customers acquired

Which financial analysis type is used to evaluate a business's present value for mergers and acquisitions?

• Liquidity analysis

• Scenario and sensitivity analysis

• Valuation analysis

• Variance analysis

What are the 7 types of Financial Analysis../

Please match the correct definition to the right vocabulary

• Valuation

• the difference the stipulated budget and the actual cost of running a business

• Profitability

• you can evaluate a business' present value

• Horizontal

• analysis refers to the evaluation of how financial statement figures change over a certain period

• Vertical

• analyze the relationship between various items on a financial

  statement.

• Variance

• you evaluate a company's rate of return