Financial Analysis

Financial Analysis is the process of evaluating a company’s financial information to assess its performance and make informed business decisions. It involves the examination of financial statements, such as the balance sheet, income statement, and cash flow statement, to derive key performance indicators, ratios, and trends. Analysts use these metrics to compare a company’s financial health against its past performance, industry standards, and competitors. The goal of financial analysis is to provide insights into profitability, liquidity, solvency, and overall financial stability, enabling stakeholders to make strategic decisions regarding investments, budgeting, and financial planning.