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Economic analysis refers to an assessment of the constancy, capability, & efficiency of a commercial enterprise as an entire or a particular project that it has assumed. It is done by specialist professionals who set up reports by the information taken from the company’s economic report. These reports are generally offered to the top management & are used as the major tool in making the industry judgment.

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Advantages of Financial Statement Analysis:

  • It gives an idea to the investors regarding deciding on investing their resources in a particular corporation.
  • Regulatory authorities can make sure the company following the necessary accounting standards.
  • It is useful to the government agencies in the study of the Taxation owed to the firm.
  • Above all, the corporation is able to analyze its presentation over a detailed time period.

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