Editing Financial analysis (section)

{{Short description|Assessment of the viability, stability, and profitability of a business}}
{{Distinguish|Economics{{!}}Economic analysis}}

{{Accounting}}

'''Financial analysis''' (also known as '''financial statement analysis''', '''accounting analysis''', or '''analysis of finance''') refers to an assessment of the viability, stability, and profitability of a [[business]], sub-business, [[Project#Corporate_finance |project]] or investment. 

It is performed by professionals who prepare reports using [[ratio]]s and other techniques, that make use of information taken from [[financial statements]] and other reports. These reports are usually presented to top management as one of their bases in making business decisions.  
Financial analysis may determine if a business will:

*Continue or discontinue its main operation or part of its business;
*Make or purchase certain materials in the [[Manufacturing|manufacture]] of its product;
*Acquire or rent/lease certain machineries and equipment in the production of its goods;
*Issue  [[share capital|shares]] or negotiate for a bank [[loan]] to increase its [[working capital]];
*Make decisions regarding investing or lending capital;
*Make other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.