Financial statement analysis is the process of analyzing the financial statements of a company 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.

An example of financial analysis is to analyze the performance and trends of a company by calculating financial ratios such as profitability ratio which includes net profit ratio which is calculated by net profit divided by sales and it indicates the profitability of the company by which we evaluate the company's profitability and profit trend Can do