Search results
People also ask
Who are the top 10 users of financial statements?
Who are the primary users of financial statements?
Who is interested in the financial statements of a company?
Who uses financial statements?
Dec 4, 2023 · Learn who are the common users of financial statements and why they need this information. Find out the different types of users, such as management, competitors, investors, lenders, and rating agencies.
- Management of The Company
- Investors
- Customers
- Competitors
- Government and Government Agencies
- Employees
- Investment Analysts
- Lenders
- Rating Agency
- Suppliers
- GeneratedCaptionsTabForHeroSec
The company’s management is the first and foremost user of the financial statements. Although they are the ones who prepare the financial statements, the board and the management need to refer to them while considering the progress and growth of the company. The company’s management looks at the financial statement from the perspective of liquidity...
Investors are the owners of the company. They would like to understand and keep updated with the company’s financial performance. Based on the financial statement, they would like to decide whether they need to keep invested or move out of the company based on its performance.
Customers need to view the financial statements of the company from which they are procuring goods or services. In addition, big clients would like to have a long-term partnership or contract with the company; thus, they would like to work with a financially stable company. Further, a financially strong company can provide its customers with credit...
Competitors would like to know the financial status of the competing company. In addition, they would like to maintain a competitive edge on their competitors and, hence, want to know the other company’s financial health. Further, they could change their strategy by looking at the statements.
Government agencies like the Income-tax department, and the sales taxSales TaxThe government levies sales tax on the consumption of various goods and services as the percentage added to the product and services from which the government earns revenue and does the company's welfare. In the United States, 38 different states have different taxes, fro...
Employees look at the financial statement of the company from different perspectives. They would like to know if the company is doing as their bonus and increments depend on the company’s financial performance. Also, they would look to have a deep understanding of the business and the current industry situation, which will be available in the finan...
Investment analysts keep a close eye on the financial statements of the company. This is because they have good industry knowledge and are updated about how the company is performing. Based on their analysis of the financial statements, the investment analystsInvestment AnalystsAn investment analyst is an individual or firm that excels in the finan...
Lenders like traditional banks, financial institutions, and creditors would like to check the ability of the company to pay the debt. Thus, they go through the company’s financial statements and see if they would provide a loan.
A credit rating agency reviews the financial statement of the company to give credit rating to the debt instruments of the companyDebt Instruments Of The CompanyDebt instruments provide finance for the company's growth, investments, and future planning and agree to repay the same within the stipulated time. Long-term instruments include debentures,...
Suppliers like the customers would like to deal with companies with good financial health. Thus, they are also users of financial statements and make decisions to provide credit to the company.
Learn who are the top 10 users of financial statements, such as management, investors, customers, competitors, and more. Find out how they use and analyze the financial statements for their own purposes and interests.
Learn who uses financial statements, why they need them, and how they use them in business decision-making. Explore the four types of financial statements and their significance for shareholders, management, and employees.
Learn who are the users of financial statements and what information they need for decision-making. The web page lists eight categories of users, such as owners, management, lenders, and government, and explains their interests and needs.
- Investors and shareholders. They are usually the owners of the company so they want to know how much financial benefit is the company giving them and how much the company is worth.
- Employees. Their job security is 100% related to the company so they usually want to know how the company is doing. If the company is making a good profit, they can expect secure employment and the possible pay rise.
- Customers. The general customers who do not depend much on the company’s supplies might not concern about the company’s performance. However, some customers are dependent much on the company’s supplies.
- Suppliers. Suppliers usually provide the credit term for the goods or materials the company purchases, hence they want to want to know if they will get paid after goods or material delivered to the company.
Feb 2, 2024 · Learn what financial statements are, how they are used, and how to read them. Find out the differences between balance sheet, income statement, cash flow statement, and equity statement, and see examples from ExxonMobil.
May 2, 2020 · Learn who are the three key groups of primary users of financial statements according to the 2018 Conceptual Framework. Find out what information they need and how it affects the preparation and presentation of financial statements.
