FINANCIAL ANALYSIS Definition

FINANCIAL ANALYSIS is analysis of a companys financial statement, usually by accountants or financial analysts.

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GROSS SURPLUS RATIO measures the margin on each dollar of operating revenue for the entity in question. The operating results before interest and depreciation, or gross surplus, are calculated as a percentage of total operating revenue. The gross surplus ratio shows the gross surplus as a percentage of the entitys turnover. If the percentage is high this could be interpreted as a sign that the entity is operating efficiently.

GUIDANCE, in corporate finance, is information that a company provides as an indication or estimate of their future earnings; sometimes known as "earnings guidance".

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