International Journal of Commerce and Management Research

International Journal of Commerce and Management Research


International Journal of Commerce and Management Research
International Journal of Commerce and Management Research
Vol. 2, Issue 2 (2016)

Emerging importance of financial statement analysis


Vishal Saxena

Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company's financial statements to make better economic decisions. These statements include the income statement, balance sheet, statement of cash Hows, and a statement of retained earnings. Financial statement analysis is a method or process involving specific techniques for evaluating risks, performance, financial health, and future prospects of an organization. It is used by a variety of stakeholders, such as credit and equity investors, the government, the public, and decision makers within the organization. These stakeholders have different interests and apply a variety of different techniques to meet their needs. These reports are usually presented to top management as one of their bases in making business decisions. This paper seeks to represent the same.
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