Financial Analysis

Financial Analysis refers to the process of evaluating a company’s financial information and performance to make informed business decisions. It involves examining income statements, balance sheets, cash flow statements, and other financial documents to assess profitability, liquidity, solvency, and overall financial health. Financial analysts use various techniques and tools, including ratio analysis, trend analysis, and forecasting, to interpret data and identify patterns or anomalies. The goal of financial analysis is to provide insights into a company’s operational efficiency, investment potential, and financial stability, helping stakeholders, such as managers, investors, and creditors, to make strategic decisions regarding investments, budgeting, and financial planning.