Financial analysis of a company involves examining and studying various aspects of its financial health, such as its assets and liabilities, sources of revenue and expenses, and cash flow. It is also known as financial statement analysis or financial modelling. Companies use financial analysis to assess their current financial situations and develop plans for future growth. The goal of this type of analysis is to be able to make informed decisions about how best to allocate resources, minimize risks, and maximize profits. To accomplish this, the analyst must have an understanding of the company’s business model, industry trends and macroeconomic factors, as well as knowledge of accounting principles and practices. Through financial analysis, companies can discover opportunities for profit, identify potential problems, and ensure that operations run smoothly.