Financial analysis is the process of evaluating a company’s financial statements and other related data to gain insights into its financial health, performance, and stability. This analysis typically involves examining the balance sheet, income statement, and cash flow statement to assess the organization’s profitability, liquidity, efficiency, and solvency. Financial analysis can be performed using various techniques, including ratio analysis, trend analysis, common-size financial statements, and forecasting. It is commonly used by investors, creditors, and management to make informed decisions regarding investments, creditworthiness, and business strategies. The ultimate goal of financial analysis is to provide a comprehensive understanding of a firm’s financial situation, identify strengths and weaknesses, and support future planning and decision-making.
The U.S. stock market indices are experiencing a downturn, as losses continue from last week's sharp sell-off. This trend raises questions about the viability of a traditional end-of-year rally often…