PaLS and balance sheet analysis - dynamics
Dynamics analysis allows to observe how the values of respective financial categories change over time. It allows to identify the directions and intensity of the changes, and later to determine the consequences of these changes for the overall standing of the company.
Balance sheet dynamics analysis allows to determine the pace of company's development and the direction in which the structure of the assets and capitals change. The respective positions of assets and capitals are evaluated according to the following scheme: the increase/decrease of various assets categories and increase/decrease of the use of various sources of financing.
Profit and loss statement dynamics analysis allows to determine the direction and intensity of the changes of the factors influencing the financial results achieved by the company. The pace at which the levels of revenues and costs change is assessed with respect to particular areas of company's activity allowing to identify the reasons for financial results improvement or deterioration.