Methods of Analysis - Horizontal and Vertical Assignment

Methods of Analysis - Horizontal and Vertical - Assignment Example The horizontal analysis for an income statement is taken out by considering two years data. By taking out the difference between both years, a further calculation is conducted. Similarly, the balance sheet also requires the same technique for conducting the horizontal analysis. Vertical analysis is a relative analysis of the financial data. In this particular case, each category of the financial statement is classified as a percentage of other related items. Basically, all the items are listed according to the percentage value of the total sales. Likewise, in the case of a balance sheet, all the listed items are derived from the percentage value of the total assets. This analysis is very helpful as financial decision-makers are capable of making the decision on the basis of account balances held within the single time span. With the help of ratio analysis, the decision makers take out quantitative analysis regarding the data provided by the firm’s financial statements. There a re certain formulas used to calculate the ratios. The basic motive of analysis is to measure the performance of the firm in comparison to the competitors, the historical data, and even the industry as a whole. In order to take out fundamental results, current year ratios are compared to the timeline results (Sinha, 2009). The main purpose of the analysis of financial statements is to recognize the advantages of the company and take the most out of them and to recognize the weakness of the company and take corrective measures (Cagan, 2005). In the horizontal analysis, the dynamics and the tendency of the position of the financial statements are examined. On the basis of the observed changes, the security and business efficiency is estimated. Whereas in vertical analysis enables insight into the structure of the financial statements. The structure of the financial information is very important in determining the business quality. Ratio analysis is divided into 2 groups; one group cont ains information within a certain period, typically one  year. Group 1 uses data from the cash flow statement and income statement.   Group 2 contains information from a particular moment and relates to data of the balance sheet.   Thus, this measures the quality of the business.

Gulf Cooperation Council's Foreign Policy Essay

Gulf Cooperation Council's Foreign Policy - Essay Example This paper aims to examine the GCC’s changing foreign policies towards leading players in the region, especially, the GCC’s primary mandate being to promote, protect and pursue the interests of its member states. The Gulf Cooperation Council is an alliance of countries with similar political and economic interests, whose primary focus is to foster the political and economic development of its member states.1 The GCC seeks to strengthen the regional relations through increased collaborations between national states in the gulf; unity in political and economic associations between national states within the region is just a means to an end for the member states- the end itself is political and economic prosperity that is backed with strong currencies and a host of natural resources. The Gulf Cooperation Council (GCC), as a political and economic alliance, has been in existence for over 30 years now since its inception; the alliance dates back in history to 30 years ago when it was founded in Riyadh, Saudi Arabia on May 1981.2 The GCC alliance has been operational since then up to date, and the founder countries converged based on two main strategic reasons- promotion of political stability and economic prosperity. In other words, the alliance was formed purely out of the need by member states to join efforts to becoming politically and economically stable; the alliance was thus a strategic move to strengthen the political and economic stability of the region. The Gulf Cooperation Council is made up of six Middle Eastern countries that are found in the gulf region; these six countries include Saudi Arabia, the United Arab Emirates, Kuwait, Oman, Bahrain and Qatar.3 Being a regional alliance, all the member countries have a number of things in common, and are subject to similar socio-economic, political, environmental and