Financial statement analysis refers to the examination of the viability, profitability, and stability of a business enterprise as a whole or that of a particular project that it has undertaken. The analysis is performed by the expert professionals based on the available resources present in the organization. The whole financial statement is stated in a report, to represent the organization financial status to the top management. It helps the management in taking a decision based on the financial statement produced. In short, the financial statement allows the management to make an informed decision regarding the overall business operation of the organization.
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