Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. 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 manufacture of its product;

Acquire or rent/lease certain machineries and equipment in the production of its goods;

Issue stocks 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.

Uses of Financial Analytics

Financial analytics helps a business to

Understand the performance of an organization

Measure and manage the value of tangible and intangible assets of an organization

Manage the investments of the company

Forecast the variations in the market

Increase the functionalities of information systems

Improve the business processes and profits