Financial Analysis

Financial analysis is the process of evaluating a company’s financial information to understand its performance and make informed business decisions. This analysis typically involves examining financial statements, such as the balance sheet, income statement, and cash flow statement, to assess an organization’s profitability, liquidity, solvency, and overall financial health. Analysts may use various techniques, including ratio analysis, trend analysis, and comparative analysis, to interpret the data and derive insights. Financial analysis is critical for stakeholders, including investors, creditors, and management, as it helps in forecasting future performance, identifying strengths and weaknesses, and guiding strategic planning.