Analysing Finances Essay Example | Topics and Well Written Essays - 250 words

Analysing Finances - Essay ExampleAdditionally, how the companys share price has been throughout a year, what the audit composing is saying about the companys financial position and performance, whether it provides a irrefutable healthy financial position or the audit report raises some doubts over some aspects of the company. In addition, an investor must try to gain understanding that how the company has obtained the financial numbers, it would be only possible by knowing its corporate strategies. Many reasons require obtain such information. For investors only relying on the provided annual report would be insufficient to convince them as recently many huge companies despite showing a remarkably healthy financial position become bankrupt and declared their bankruptcy among them, the debacle of might giant Enron, declared bankruptcy in late 2001 (Barreveld, 2002, pp.118). Additionally, third party evaluation presents more hard-nosed as there are less chances of conflict of inte rest. Among them, the credit rankings issued by different ranking companies may offer some help as the ranking companies do not have, most of the time, any point link or business dealing with the corporate companies. References Barreveld, D.J. (2002), The Enron Collapse Creative Accounting, Wrong Economics or Criminal Acts USA IUniverse.