Financial Statement Analysis: Purpose, Techniques, and Problems Associated
Instructions
Based on your readings this week, explain the purpose of financial statement analysis, describe the primary techniques used in financial statement analysis, and finally, discuss the problems associated with financial statement analysis.
- Write a minimum of 300 and a maximum of 350 words.
- Support your post b¥ citiing one reference (other than the text) in the discussion.
- Submit your original post
- Respond to at least 1 other post
- Failure to submit posts in a timely manner, meet the assigned minimum word count, include citations and references for external sources, or respond to an instructor or peer comment will result in a loss of points
Module 8 Discussion: Financial Statement Analysis
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Module 8 Discussion: Financial Statement Analysis
Even though most organizations have been using financial statement analysis, some people still do not understand it. Financial statement analysis is the company's process of analyzing financial statements for decision-making. The financial statement analysis aims to help the organization plan (Gapenski, 2019). For example, since financial statement analysis involves financial numbers and synthesis, it will be used to evaluate the existing economic trends and then set a financial policy which helps in business activity long-term plans and helps the company identify the rights projects for investment. Moreover, the financial analyst can examine the company's financial statement, thereby understanding the current performance of the company and