Financial Statement Analysis: Purpose, Techniques, and Problems Associated

Module 8 Discussion: Financial Statement Analysis
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Module 8 Discussion: Financial Statement Analysis
Even though most organizations have been using financial statement analysis, some people still do not understand it. Financial statement analysis is the company's process of analyzing financial statements for decision-making. The financial statement analysis aims to help the organization plan (Gapenski, 2019). For example, since financial statement analysis involves financial numbers and synthesis, it will be used to evaluate the existing economic trends and then set a financial policy which helps in business activity long-term plans and helps the company identify the rights projects for investment. Moreover, the financial analyst can examine the company's financial statement, thereby understanding the current performance of the company and