To conduct a financial analysis, you’ll need historical data. Create financial statements using all the expense records. Financial analysis includes income statement, balance sheet, cash flow statement, accounts receivable reports, accounts payable reports, and inventory reports.
Inspect and analyze the number on the statement to find out what worked and what doesn’t by comparing the data with past weeks and months. You can assess two dimensions of financial health i.e., margins & utilization of capital with the help of financial analysis.