What is it Financial analysis?

Financial Analysis means deep examination of funds of any organisation from many perspective so that threats can be converted into opportunities and opportunities can be capitalised. Financial Analysis is done to strengthen the business. It is also done to evaluate businesses, projects, budgets to determine their performance & suitability.

Financial analysis can be defined as a process that evaluates businesses, budgets, projects, and entities for analysis purpose. This evaluation is done with the purpose of determining the suitability for investment by a business. Usually, the main purpose of financial analysis is to analyze the stability, solvency, liquidity, and profitability of a business.

The process of financial analysis is carried out by professionals who work by preparing reports with the help of ratios containing information from financial statements and other similar reports.