What do you understand by Financial Analysis of Financial Statements

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What do you understand by Financial Analysis of Financial Statements

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  • 03 Dec, 2018

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Financial Analysis- A process that evaluates businesses, projects, budgets, and other finance-related entities to analyze their performance. It is used to analyze whether the entity is stable, solvent, liquid or profitable enough to warrant a monetary investment. 

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Financial analysis, also known as accounting analysis, refers to the valuation of the viability, stability, and profitability of the business or a project. This analysis is performed by professionals who have to prepare reports for the same. 

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