Significance of Financial Analysis Tools



Significance of Financial Analysis Tools

Introduction

Financial Analysis is concerned with analysis of financial statements and various accounts. It evaluates the vulnerability, suitability and productivity of business or a project. It is primarily done by analysts by calculating various ratios that evaluate the current performance of company and facilitate them to compare it to the other companies and Industry. It also provides a picture of performance trends to managers on the basis of which significant decisions are made. It also involves preparation of financial reports, which are submitted, to top management for review.

Discussion

A financial analysis may help ...