What is financial analysis?

Financial analysis is the in-depth examination of a company's financial statements (balance sheet, income statement, cash flow statement) to assess its economic health, profitability, and solvency. It is used by managers, bankers, and investors to make informed decisions.

Main Financial Ratios

• Profitability ratios: Net margin, return on equity (ROE).
• Liquidity ratios: Current ratio, quick ratio.
• Debt ratios: Repayment capacity, financial leverage.
• Activity ratios: Inventory turnover period, average payment period.

Read our article on the difference between financial management and accounting management. GestiumERP provides the data necessary for a complete financial analysis.