A financial statement analysis is a process of reviewing and evaluating the financial statements of a business to make better and crucial decisions. The financial statement analysis involves analysing the balance sheet, income statement, profit and loss statement, cash flow statement, and statement of changes of equity.
The most important component of a financial statement is the income statement, balance sheet, and the statement of cash flows. These statements are created to be defined as a whole, to properly represent the financial analysis condition and results of a business.
Here are some ways you can do a financial analysis.