Financial Statement Analysis Essay Example | Topics and Well Written Essays - 2500 words

fiscal Statement Analysis - Essay ExampleThe companies selected for this by this essay for this depth psychology are the Nishat mill bound and the Crescent Textile mill Limited. The incorporation of Crescent Textile Mills Limited as a public limited company was done in 1950 in Pakistan under the Companies Act of 1913. It is headquartered in Sargodha Road, Faisalabad. Its lineage is to textile manufacturing and includes spinning, combing, dyeing, bleaching, printing, weaving, stitching, selling buying, and otherwise dealing in cloth, yarn and other products and fabrics made from raw cotton wool as well as synthetic fibers (The Financial Times Ltd, 2015). In addition, it generates, accumulates, distributes, supplies and sells electrical energy. The Crescent Textile Mills Limited also operates a cold storage unit (Crescent Textile Mills Limited, 2013, p. 37).As a publicly listed company, Nishat Mills Limited was also incorporated in Pakistan in 1959 under the Companies Act of 1913 (Ni shat Mills Ltd, 2013, p. 54). It is a vertically integrated company and just like Crescent Textile Mills Limited, its bloodline involves textile manufacturing, spinning, combing, weaving, dyeing, printing, stitching, bleaching, apparel, buying, selling, dealing in yarn, cloth, linen, and other products and fabrics made from synthetic fiber and raw cotton. It also generates, accumulates, distributes, supplies and sells electricity (The Financial Times Ltd, 2015).Trend analysis is done by conducting horizontal and vertical analysis. The horizontal analysis is performed to focus on the trends or changes in fiscal statement items. The management and other users of financial info can see the relative changes over time in terms of positive and perhaps perturbing trends (Putra, 2009). In performing this analysis, absolute amount as well as percentages is used to compare financial statements over several time periods