Intro:
Financial statement analysis is a process of applying analytical tools and techniques to financial statements(like Balance sheet, P&L statement, Cash Flow statements).
the intention behind the analysis of financial statements is to relate the data to derive estimates and inferences useful in taking critical business decisions.
Features of Financial analysis:
1. It is used as a screening tool to identify potential companies, with excellent prospect for investment, mergers & acquisitions.
2. To forecast future financial conditions of the entity.
Users of Financial Statements:
1) Internal users: mangers in the company.
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