Skip to Main Content
Baker University logo

Corporate Finance

Financial Statement Analysis

Financial statement analysis is the process of assessing a company’s financial health by reviewing its financial statements, including income statements, balance sheets, and cash flows. The business value of a company can be assessed by looking at industry economics, company strategies, profitability, and risk. Financial statement analysis can be performed over a series of reporting periods in a structured way using ratio analysis, horizontal analysis, and vertical analysis.