What is learned from the process of financial statement analysis?
Financial statement analysis is concerned with such factors as liquidity, activity ratios, leverage, and profitability, delivering nuanced data on many fronts. The process of financial statement analysis allows interested parties to measure the company’s likelihood of remaining in business, the management’s performance, primary methods of funding (How Financial Statement Analysis Helps Business Grow, 2020). It can also be used to effectively measure the company’s ability to generate profits. All of these factors can be further divided into sub-sections and analyzed.
