How is the financial statements analysis useful to finance manager?
Question: How is the financial statements analysis useful to finance manager?
Financial statement analysis is useful to finance managers in the following ways: Helps in decision making: Financial statement analysis provides valuable insight into a company's financial health and performance, which can assist finance managers in making informed decisions regarding investment, funding and operational improvements.
Evaluates financial performance: Financial statement analysis enables finance managers to evaluate a company's financial performance against industry benchmarks, historical data and competitors. This analysis can help identify areas of strength and weakness in a company's financial performance.
Identifies Trends and Patterns: Financial statement analysis helps finance managers identify trends and patterns in a company's financial performance over time, which can be used to predict future financial results.
Supports strategic planning: Financial statement analysis can assist finance managers in developing and refining strategic plans by identifying opportunities for growth, potential risks and areas in need of improvement.
Aids in Financial Reporting: Financial statement analysis provides finance managers with the information they need to prepare accurate financial reports and disclosures to stakeholders, regulators and investors.
Overall, financial statement analysis is an important tool for finance managers to effectively and efficiently manage their company's financial resources.
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