What do you mean financial analysis?

Financial analysis is the process of evaluating businesses, projects, budgets and other finance-related entities to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid or profitable enough to warrant a monetary investment. When looking at a specific company, a financial analyst conducts analysis by focusing on the income statement, balance sheet and cash flow statement.

Financial analysis is

The examination of a business from a variety of perspectives in order to understand the financial situation and determine how best to strengthen the business

It looks at many aspects of a business from its profitability and stability to its solvency and liquidity

Financial analysis is the process of evaluating businesses, projects, budgets and other finance-related entities to determine their performance and suitability. ... When looking at a specific company, a financial analyst conducts analysis by focusing on the income statement, balance sheet and cash flow statement.