What are the objectives/benefits of fianational statements analysis?

[Suba]

Every business or company is obliged to make a valid and accurate financial statement, but it is also recommended to make a fianational statement analysis.

Financial Statement Analysis is a process to evaluate business performance. This analysis can be done in various ways both horizontal, vertical or using ratio analysis. This financial statement analysis is often considered important because it has crucial goals or benefits both for internal companies such as business owners, directors, managers, employees or external parties such as tax offices, banks, investors etc.

 

[magnus2022]

Financial statement analysis is very important in business. It do help business owners to valuate his business and see what need to be improved and what need to be done. Financial statement analysis also help investors to evaluate the business and know its true worth.