Reasons To Carry Out Financial Analysis
Financial analysis is the process of reviewing and analyzing the company’s financial statements and decisions to make better economic decisions in the future. In other words, its the process of determining the financial strengths and weaknesses of the organization by establishing the strategic relationship between the items on the balance sheet, loss or profit account, and other financial statements. Why financial analysis is important? The financial analysis will help the company understand its current financial condition. It will also be useful to learn creditworthiness, profitability, and also the ability to generate more wealth. Hence, it's always important to carry out an in-depth financial statement analysis along with creating the best marketing plan . The following are the reasons for considering the analysis of the financial statements: Shares investment and holding – Shareholders usually own the company. investments happen with repeated shares and transfers. With time, t...