An introduction to financial analysis

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Well, you know how to analyse a business. With that done, the next step is financial analysis.

Transcript

An introduction to financial analysis What is financial analysis? Financial analysis is the process of analyzing the financial data of a company To see if it makes for a good investment option Here are some of the key elements you can use in financial analysis. The revenue and the net profit of a company – which you’ll find in the profit and loss statement. The assets and liabilities of the company – which you’ll find in the balance sheet. The way the company generates and uses its cash – which you’ll find in the cash flow statement. With these elements of financial analysis, you can get to know a business financially, in numbers. We’ll delve deeper into these financial statements in the coming lesson. Keep going with the course to get to know more about this.