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Ans: Financial statement analysis is the process of analyzing an organization's financial statements for decision-making purposes and understanding the overall financial health of the company. A student of accounting and finance may have to perform this exercise as a part of his/her assignment or as a part of the academic curriculum.
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Identify the industry’s economic characteristics and company strategies
Evaluate the quality of the firm’s financial statements
Analyze current profitability and risk
Prepare forecasted financial statements and value of the firm
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