Financial Analysis and Reporting is the practice of analyzing an organization’s financial statements and other financial data to understand performance, identify possible causes of deviation from expected results, gain insight into potential areas of improvement, and make decisions based on that understanding. It involves evaluating both historical and current financial information—such as income statements, balance sheets, and cash flow statements—to identify trends, compare financial statements to industry averages, investigate any anomalies or unexpected changes, and assess risk. By using these forms of financial analysis, businesses can more accurately evaluate their performance and make the right decisions for their future.