Financial analysis is a key factor in making informed business decisions. It helps businesses track revenue, expenses, and profitability to ensure financial stability. By analyzing cash flow, companies can manage expenses, avoid debt issues, and plan for future growth.

Investors and lenders also rely on financial analysis to assess a company’s health before providing funding. Regularly reviewing financial statements, ratios, and market trends allows businesses to identify risks, improve efficiency, and maximize profits. Strong financial analysis leads to smarter strategies and long-term success.