Wikipedia defines
"Financial analysis .....financial statement analysis or accounting analysis... assessment of the viability, stability and profitability of a business....
... management may:
- Continue or discontinue its main operation or part of its business;
- Make or purchase certain materials in the manufacture of its product;
- Acquire or rent/lease certain machineries and equipment in the production of its goods;
- Issue stocks or negotiate for a bank loan to increase its working capital;
- Make decisions regarding investing or lending capital;
- Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.
Goals
Financial analysts often assess the firm's:
1. Profitability...
2. Solvency......
3. Liquidity...
4. Stability...
Methods
Financial analysts often compare financial ratios ....
- Past Performance ...
- Future Performance ...
- Comparative Performance..."