financial analysis



Assessment of the (1) effectiveness with which funds (investment and debt) are employed in a firm, (2) efficiency and profitability of its operations, and (3) value and safety of debtors' claims against the firm's assets. It employs techniques such as 'funds flow analysis' and financial ratios to understand the problems and opportunities inherent in an investment or financing decision.

Use financial analysis in a sentence

  • Our brand new financial analysis plan was set and would begin at the start of the new year, which was perfect.

    5 people found this helpful
  • Before purchasing their first home, Jim and Sally did a thorough financial analysis so there wouldn't be any surprises when applying for a mortgage.

    6 people found this helpful
  • It was clear to the investment banker after reviewing the company's financial analysis that the annual loan renewal would be denied.

    2 people found this helpful
Show more usage examples...

Related Videos

Have a question about financial analysis? Ask for help in the
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z