Financial Research is the process of evaluating business projects, budgets, and other finance-related entities to determine their performance and suitability. Simultaneously. Financial Research is used to analyze whether an entity is stable, solvent or has a liquidity position or profitable enough to warrant a monetary investment. while looking at a specific company or a financial analyst which conducts by focusing on the income statement or balance sheet.
Definition
Financial Analysis may determine If a Business will
- • Continue or discontinue its main operation or part of its business.
- • Purchase certain Materials for Relating to the manufacturing requirement.
- • Acquires certain types of machinery and equipment in the production of its goods.
- • Take decisions Regarding Investing or Lending Capital.
- • Management will also use various Alternatives to conduct the business.
Financial Goals
It’s ability to earn income.it will not only enhance the growth of the short term but also of the long term. A company’s degree of profitability is usually based on a balance sheet that reports on the company’s relating operations.
It is the ability to pay it’s an obligation to creditors and other third parties in the long term conditions.
It’s main ability to maintain Cash flow while converting the liquid assets into cash for their future expansions.
the firm can always stay longlasting without suffering from huge losses in the conduct of the business.As a constant profit can make the firm’s best position in the market.Because it not only requires the use of an income statement but also for the balance sheet, as well as the financial and non-financial terms.
