<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company's financial statements to make better economic decisions . These statements include the income statement, balance sheet, statement of cash flows, and a statement of changes in equity . Financial statement analysis is a method or process involving specific techniques for evaluating risks, performance, financial health, and future prospects of an organization . </P> <P> It is used by a variety of stakeholders, such as credit and equity investors, the government, the public, and decision - makers within the organization . These stakeholders have different interests and apply a variety of different techniques to meet their needs . For example, equity investors are interested in the long - term earnings power of the organization and perhaps the sustainability and growth of dividend payments . Creditors want to ensure the interest and principal is paid on the organizations debt securities (e.g., bonds) when due . </P>

Analyzing and interpreting reports is what aspect of accounting