Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company's financial statements to make better economic decisions. The statements analysed include the statment of profit or loss, statement of financial positionn (balance sheet), statement of cash flows, notes to accounts and a statement of changes in equity (if applicable). Financial statement analysis is a method or process involving specific techniques for evaluating risks, performance, financial health, and future prospects of an organization for informed decision making.
Reasons for Financial Statement Analysis
1. Evaluate economic trends
2. Set financial policy
3. Build long-term plans for business activity
4. Identify projects or companies for investment
5. Used by lenders to determine borrowers capacity to repay the loan
Users of Financial Analysis
1. Owners and investors
2. Management
3. Lenders
4. Creditors and Supplier
5. Goverment
6. Employees
7. Stock Brokers
8. General Public
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Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company's financial statements to make better economic decisions. The statements analysed include the statment of profit or loss, statement of financial positionn (balance sheet), statement of cash flows, notes to accounts and a statement of changes in equity (if applicable). Financial statement analysis is a method or process involving specific techniques for evaluating risks, performance, financial health, and future prospects of an organization for informed decision making.
Reasons for Financial Statement Analysis
1. Evaluate economic trends
2. Set financial policy
3. Build long-term plans for business activity
4. Identify projects or companies for investment
5. Used by lenders to determine borrowers capacity to repay the loan
Users of Financial Analysis
1. Owners and investors
2. Management
3. Lenders
4. Creditors and Supplier
5. Goverment
6. Employees
7. Stock Brokers
8. General Public
If this information has been useful to you, kindly share with your friends and those who needs it.