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Description
Financial statements need to be properly interpreted and effectively analyzed to get meaningful decisions (The Financial Analysis). Financial Analysis is a very effective tool of monitoring the firm from all perspectives i.e. stockholders, investors, creditors, managers. Financial analysis includes interpretation of financial statements and establishment of relationships between several items (or elements) of financial statements for specific conclusions. In simple words, Financial Analysis is a process to find out the performance, efficiency, profitability, financial soundness and future prospects of a business, based on the financial statements of a business. The relationships, in the form of ratios, can be established...