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Financial Statement Analysis is the process of analyzing the company’s financial documents or information to determine whether the company is financially sound or not. This is one of the most crucial assessments in the financial section of a business since it shows investors, lenders, and other stakeholders how efficient the company is. It delivers the company’s level of credibility to the outside world. A financial analyst will perform the analysis of financial statements to meet the legal regulations and help maintain the company’s financial health. This article explains its importance, the types of analysis, and how to perform them efficiently.   Source: Pinterest Financial Statement Analysis – Definition The financial statements analysis is the process of evaluating or reviewing the financial records to understand a company’s financial position and maintain its financial health and stability. This evaluation is much anticipated by the business stakeholders, investors, managers, and creditors. Since this statement will point out the credibility of the company. Henceforth, financial performance evaluation is a vital process for every business.  Financial performance evaluation will evaluate the company’s budgets, other financial-related cash transactions, and business projects. Evaluation of the financial statements will also enhance the ability of a business to identify