Financial Analysis

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Definition of 'Financial Analysis'

Financial analysis is the process of evaluating the financial health of a company, business, or other organization. It involves collecting, analyzing, and interpreting financial data to make informed decisions about the organization's financial health and future prospects.

Financial analysis can be used for a variety of purposes, including:

* Making investment decisions
* Evaluating a company's creditworthiness
* Planning for future growth
* Identifying areas where the organization can improve its financial performance

There are a number of different methods and techniques that can be used for financial analysis. Some of the most common methods include:

* Ratio analysis
* Cash flow analysis
* Budgeting
* Forecasting

Financial analysis can be a complex and time-consuming process, but it is essential for making informed decisions about the financial health of an organization. By understanding the financial health of an organization, you can make better decisions about where to invest your money, how to manage your credit, and how to plan for your financial future.

Here are some additional resources that you may find helpful:

* [The Basics of Financial Analysis](https://www.investopedia.com/articles/personal-finance/081515/basics-financial-analysis.asp)
* [Financial Analysis Tools and Techniques](https://www.thebalancesmb.com/financial-analysis-tools-and-techniques-4177752)
* [How to Conduct Financial Analysis](https://www.investopedia.com/articles/personal-finance/081515/basics-financial-analysis.asp)

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