Financial Analysis

Financial Analysis refers to the process of evaluating a company’s financial data to assess its performance and make informed decisions. It involves the examination of financial statements, such as balance sheets, income statements, and cash flow statements, to understand the business’s profitability, liquidity, solvency, and overall financial health. The analysis can include ratio analysis, trend analysis, forecasting, and benchmarking against industry standards. Financial analysis is essential for stakeholders like investors, management, and creditors as it helps in making strategic decisions regarding investments, budgeting, and financial planning.