The course of analyzing the financial information mentioned in the financial statements to understand and form decisions concerning the functioning of an organization falls under the definition of financial statement analysis. Primarily it is the study and interpretation of the correlation between several financial facts and statistics mentioned in the financial statements. The interpretation helps in understanding the profitability and operational efficiency of the organization to ascertain its financial status and future potential.
The definition of financial statement analysis includes both analysis and interpretation. The analysis here means the systematic classification of the data mentioned in the financial statements, whereas interpretation means describing the data and establishing its significance. The definition of financial statement analysis is incomplete if any of the two is missing. If you are still confused about the definition of financial statement analysis, you can take help from our writers, who can guide you with simple illustrations. If you have been assigned to write an assignment on the definition of financial statement analysis, you can contact our financial writers to get concrete information about the topic. They can write a detailed financial statement analysis assignment definition.