•Financial statement analysis is the process of analyzing a company's financial statements for decision-making purposes. External stakeholders use it to understand the overall health of an organization as well as to evaluate financial performance and business value.

Example of Financial analysis is analyzing company’s performance and trend by calculating financial ratios like profitability ratios which includes net profit ratio which is calculated by net profit divided by sales and it indicates the profitability of company by which we can assess the company’s profitability and trend of profit.