3 Key Financial Analysis Techniques for Assessing the Financial Health of a Business

Business leaders who are only relying on their organization's financial statements to assess its financial health are likely not getting a complete picture of financial performance. Financial analysis is key to getting a full understanding of an organization's financial health.

Financial analysis involves the selection, evaluation and interpretation of financial and other data to assist in making informed decisions. The type of analysis that needs to be performed will be dictated by the user of the analysis and what they are trying to accomplish. In this article we will focus on three (3) insightful financial analyses for Business Owners & Leaders. Their primary interest is typically cash flow, profitability and performance.