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Financial Statement Analysis

Financial Statement Analysis is the process of reviewing and evaluating a company’s financial statements—such as the balance sheet, income statement, and cash flow statement—to gain insights into its financial health, performance, and future prospects. This analysis helps stakeholders, including investors, creditors, and management, make informed decisions by assessing profitability, liquidity, solvency, and operational efficiency. Techniques include ratio analysis, trend analysis, and comparative analysis, which help identify strengths, weaknesses, and trends over time.

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