A financial statement is a summary of the financial activities of a business that helps owners, investors, and stakeholders gain an understanding of the company’s finances. It includes income statements, balance sheets, and cash flow information, as well as comparisons to past periods and industry averages. Financial statements are a key source of data used by management to evaluate the performance of the business and make important decisions about future growth and direction. They also allow stakeholders to track trends in sales, expenses, and profits to better understand how their investments are performing. By analyzing a business’s financial statements over time, owners and investors can get insight into projected returns on their investments and assess the overall stability of the company.