The analysis of the financial statements is part of the business analysis and is carried out with the purpose of introducing the economic and financial strength and possible perspectives of the company.
The analysis defines the current state of the company, providing real and objective data on the company’s liquidity, financial stability, indebtedness and profitability, defining the causes and symptoms of financial problems in the company. Users of this data can be owners, managers, creditors, auditors, states, employees.
Fundamentals for the preparation of a quality analysis of financial statements are: balance sheet (presentation of assets and liabilities of a company on a specific date), profit and loss account (statement of income, expense and results for a given period), cash flow statement (presentation of receipts and expenditures) the statement of changes in equity and notes to the financial statements.