Financial Analysis

Financial analysis is the process of evaluating a company’s financial information to assess its performance and make informed business decisions. This analysis typically involves reviewing financial statements, such as the balance sheet, income statement, and cash flow statement, to understand the organization’s profitability, liquidity, solvency, and overall financial health. Financial analysts use various tools and techniques, including ratio analysis, trend analysis, and forecasting, to interpret the data. The insights gained from financial analysis help stakeholders, including management, investors, and creditors, to make decisions regarding investments, budgeting, and strategic planning, ultimately guiding the financial direction of the organization.