Financial Analysis

Financial analysis is the process of evaluating a company’s financial data to make informed business decisions. This involves examining financial statements, such as the income statement, balance sheet, and cash flow statement, to assess the company’s performance, profitability, liquidity, and solvency. Financial analysts use various tools and techniques, including ratio analysis, trend analysis, and forecasting, to interpret the financial health of an organization. The goal of financial analysis is to provide insights into financial performance, identify strengths and weaknesses, and support strategic planning, investment decisions, and risk management. It is commonly used by investors, creditors, and management to guide financial decision-making and enhance business operations.