Financial Analysis

Financial Analysis

A financial analysis helps business owners determine their company's performance, sustainability, and growth by reviewing various financial statements like their income statement, balance sheet, and cash flow statement.

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  • If conducted internally, financial analysis can help fund managers make future business decisions or review       historical trends for past successes.
  • If conducted externally, financial analysis can help investors choose the best possible investment opportunities.
  • Fundamental analysis and technical analysis are the two main types of financial analysis.
  • Fundamental analysis uses ratios and financial statement data to determine the intrinsic value of a security.
  • Technical analysis assumes a security's value is already determined by its price, and it focuses instead on trends       in value over time.
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