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- Sep 24, 2021
Understanding and Analyzing Financial Statements
Financial statement analysis is the process of analyzing a company's financial statements for decision-making purposes. As a business owner, knowing how to analyze financial statements will allow you to assess your company’s strengths and weaknesses, and determine the overall financial position of the company. There are various techniques available to analyze financial statements. Ratio analysis is the most widely utilized technique. Ratio analysis measures the proportional r