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  • Apr
    26

    What is The Analysis of Financial Statements?

    The analysis of financial statements is a set of techniques and tools that allow us to study the situation and prospects of the companies and thus helps us make decisions.

    This analysis has two interested public and, on the one hand, allows business managers to define strategies to achieve their economic objectives and, secondly, provides information to external actors interested in the situation and possible evolution of the company in the future, as would the financial institutions, shareholders, suppliers, customers, employees, potential investors or the public administration.

    The financial statements of the company consist of the Balance Sheet, the Profit and Loss Account and the Report. These then are the elements that should be analyzed for a comprehensive review of the company’s financial situation.

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