Finance analysis is the process of examining an organization’s financial resources and evaluating how those resources are allocated to maximize value for stakeholders. It involves examining financial statements, cash flows, budgets, balance sheets and other related documents to identify areas of potential opportunities or risks. Finance analysts use their knowledge of finance, accounting, economics and business strategy to interpret figures and recommend ways to improve profitability, liquidity, solvency and risk management. By understanding the big picture and industry trends, they can suggest improvements on the way resources are used and help meet organizational goals.