In financial statement analysis helps decision makers understand three key parameters
(1) the past performance of the company
(2) Detailed information of company fundamentals
(3) indicators about the company’s future performance
(1) the past performance of the company :
Financial data is always viewed in comparison to past data. This helps us understood how the company and its numbers have changed.
(2) Detailed information of company fundamentals
Each important fundamentals are broken into finer parts.
the root cause of problems if any.
(3) indicators about the company’s future performance
Fundamentals the base of activities like forecasting. in forecasting you understand the past,present of the business
