External balance sheet analysis

What is an external balance sheet analysis?

The external balance sheet analysis is carried out outside the accounting company on the basis of the balance sheets made available or published by them for specific purposes, including income statement accounts, appendix and, if necessary, management reports.

A prerequisite for a meaningful external balance sheet analysis is that the balance sheet analyst largely knows or has experience of the peculiarities of the company to be analyzed, since peculiarities of the company are reflected in the balance sheet.

Problems of external balance sheet analysis

Problems of external balance sheet analysis are:

• The limited informative value of the published balance sheet, which has information gaps.

So she gives z. B. no information about

  • which credit lines exist - to what extent short-term loans can be used on a revolving basis
  • the extent to which repairs or unscheduled depreciation were omitted.

Likewise, it is not clear which assets are not necessary for the continuation of the provision of services, but which can be used in the event of severe liquidity stress. There is also no information about am Balance sheet date legally fixed receivables and liabilities from pending transactions.

Publication time

The time of publication, because according to the AktG, the general meeting must take place within 8 months of the end of the financial year (Section 175 (1) AktG); only then can the annual financial statements be disclosed or published.

• The facilities that are given to medium-sized and small corporations and make comparisons with large corporations difficult.

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