Financial analysis evaluates a company's financial health using statements and ratios, helping stakeholders make informed decisions.
Financial Analysis is the process of examining and interpreting a company's financial statements and data to evaluate its performance, stability, and profitability. This analysis helps stakeholders, including investors, lenders, and management, make informed decisions about the company's financial health and future prospects. Financial analysis involves a variety of techniques, such as ratio analysis, trend analysis, and financial forecasting, to assess aspects like liquidity, solvency, profitability, and efficiency.