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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Research into data relating to the stability and profitability of businesses, especially to guide one's investing practices. At its most basic, financial analysis involves looking at financial statements to determine if a company is healthy. Balance sheets are important to financial analysis as they provide a ready-made means of investigating performance. However, it is important to note that quantitative financial analysis has limits: the accounting methods a particular business employs, for example, may make it look more or less healthy than it really is. See also: Fundamental analysis.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
financial analysissee RATIO ANALYSIS, ACCOUNTING RATIOS.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson